The Federal Trade Commission has updated its Used Car Rule, implementing seven revisions that cover a variety of necessary disclosures, the commission said on Thursday.
The revisions to the rule -- which requires dealerships to display a window sticker or a buyers guide on used vehicles offered for sale -- will likely make it clearer to consumers shopping for used vehicles.
The seven revisions, which go into effect Jan. 27, are as follows:
Placing boxes on the face of the buyers guide that dealerships can check to indicate whether a vehicle is covered by a third-party warranty and whether a service contract may be available.
Providing a box that dealerships can check to indicate that an unexpired manufacturers warranty applies.
Adding airbags and catalytic converters to the buyers guides list of major defects that may occur in used vehicles.
Adding a statement that directs consumers to obtain a vehicle history report and to check for open recalls.
Adding a statement, in Spanish, to the English-language buyers guide, advising Spanish-speaking consumers to ask for the buyers guide in Spanish if the dealership is conducting the sale in Spanish.
Providing a Spanish translation of the statement that dealerships may use to obtain a consumers acknowledgment of receipt of the buyers guide.
Changing the description of an as is sale.
The FTC defines an as is sale as one without a warranty. If the sale is with a warranty, the buyers guide discloses the terms and conditions. In states that do not permit as is used vehicle sales, dealerships must use an alternative guide that discloses whether the sale is with a warranty or with implied warranties only.
The amended rule permits dealerships to use their remaining stock of buyers guides for one year after the effective date, the FTC said.
The FTCs vote to publish the revisions was 3-0.