“A word to the wise should be sufficient.” We’re not sure who first coined that proverb. Aesop? King Solomon? Ben Franklin? But whoever it was, if he's in the market for a used car in Arkansas, here’s news he might want to consider.
After a visit to the Jonesboro, Arkansas, area, the FTC announced in January 2013 that 11 dealers weren’t displaying the Buyers Guide required by the Used Car Rule. The Guide offers consumers important information – like whether the car is being sold as is or with a dealer warranty, the systems covered by the warranty, the duration of coverage, and the percentage of total repair costs the dealer will pick up.
The FTC didn’t announce the names of the dealers that weren't in compliance, but we did send them warning letters, including the Buyers Guide and the nuts-and-bolts publication, A Dealer’s Guide to the Used Car Rule.
Here’s the good news for Arkansas consumers. When the FTC paid another visit to Jonesboro in May 2013, 10 of the 11 dealers that got warning letters had changed their practices and were displaying the required Buyers Guide. The bad news: According to the FTC, Abernathy Motor Company and a related dealership still had vehicles for sale that didn’t have the Guide.
The upshot: The FTC announced a law enforcement action against Abernathy Motor Company and two company owners for violating the Used Car Rule. The case is pending in federal court in Arkansas.
Looking for free resources to help dealers streamline legal compliance? Bookmark the Business Center's Automobiles page.