Nov. 21, 2008 at 2:20pm

AG says federal used car rule needs a tune-up

The federal "Used Car Rule" needs a tune-up. Almost two dozen attorneys general are asking the Federal Trade Commission to add additional disclosures about a vehicle's history to the "Buyer's Guide" notice displayed on cars available for purchase from dealers.

"Laws are like cars, they need regular maintenance to make sure they're operating effectively," Attorney General Rob McKenna said. "The federal 'Used Car Rule' is rusty and needs tuning to perform properly for consumers."

The current rule requires that Buyer's Guide notices be posted on used vehicles offered for sale at dealerships. The notices indicate whether a car is covered by a warranty or sold "as-is."

But the law doesn't require additional information about a vehicle's history to be printed on the guide, such as whether cars have been assigned titles that would indicate damage from a flood or crash or if the car was repurchased by a manufacturer under a state's Lemon Law.

A state law requires dealers to disclose a vehicle's history – but only if the buyer requests this additional information.

"Nothing diminishes the market value of a used vehicle more than detrimental history," the attorneys general stated in their comments. Damaged vehicles may also pose safety hazards, they added.

Amending the Buyer's Guide to require prior-damage information would help prevent fraud and omissions of material fact, they said, noting that Wisconsin already requires such information to be disclosed on its Buyer's Guide and the FTC approved the regulation.

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