In November, 2016, the FTC amended the Used Car Rule, and made significant changes to the Buyers Guide. The amended Rule required dealers to begin displaying the revised Buyers Guide beginning January 28, 2018.
This year, the FTC conducted a sweep of car dealerships in twenty cities nationwide. Of the 94 dealerships inspected, 33 dealers were using the revised Buyers Guide on more than half of their vehicles. Only 14 dealers were using the revised Buyers Guide on all of their used vehicles. Thirty percent of the vehicles inspected did not have any Buyers Guide displayed. The FTC sent letters to the dealers following the sweep and warned of follow-up inspections. The FTC’s release reminded dealers that under the FTC Act, noncompliance can result in penalties of up to $41,484 per violation. To read more, click here.