The FTC’s Used Car Rule is the regulation that requires used car dealers to display the nearly omnipresent “Buyer’s Guide” on all used vehicles offered for sale. But are you using the right version? In 2016 the Federal Trade Commission voted to update the Buyer’s Guide. There was a grace period to use up your old stock of Buyer’s Guides, but that grace period ended on January 28, 2018. You now must use the new Buyer’s Guides.
This summer, the FTC partnered with state and local government agencies in seven states to do compliance checks for the revised Buyer’s Guide. They found that only 14 dealers out of 94 that they visited had the current version of the Buyer’s Guide on all of their used cars. This is a compliance rate of only about 15%.
Are you ready for the Feds (or state/local agencies) to check on your compliance? If you have been using the same Buyer’s Guide for the last three decades, you are not ready. The fine for non-compliance can be as high as $41,484 per violation!
Thankfully the FTC did put together a useful plain-English guide to comply with the Used Car Rule. But don’t waste time getting compliant—the next dealership they visit may be yours.