16 CFR Part 455 Used Motor Vehicle Trade Regulation Rule; Project No. P087604 #563688-00121

Submission Number:
Taras Rudnitsky
Rudnitsky Law Firm
Initiative Name:
16 CFR Part 455 Used Motor Vehicle Trade Regulation Rule; Project No. P087604
I strongly oppose the proposed changes to the FTC Used Car Rule, as they hurt American consumers, and completely misrepresent the law. For example, why would the FTC allow used car dealers to simply check a box referring the consumer to the back of a document for further information - especially when the back of a document is not readily visible because the document is attached to the car. The proposed language that "The dealer won't pay for any repairs" is simply wrong under state law. For example, the dealer is responsible for paying for repairs if they make promises or affirmations of fact, under each state's version of the UCC. In addition, virtually all states have fraud laws and Unfair and Deceptive Acts and Practics statutes that allow a consumer to recover against a dealer who engages in such practices - this includes compelling the dealer to pay for repairs. The FTC's proposed language simply gives dishonest car dealers a "get out of jail free" card. The proposed rule fails to require any inspection of the car by the dealer, even when the car is obviously unsafe. Similarly, it fails to require the dealer to disclose vehicle defects - even when the dealer ACTUALLY KNOWS OF THE DEFECTS. Why is the FTC trying so hard to pass changes that could result in consumers being injured and being killed as a result of dealer intentionally concealing known safety defects??? No wonder the FTC has developed a reputation as a do-nothing agency when it comes to consumer protection. I am confident that the FTC's unwillingness to protect America's consumers was one factor that contributed to the Consumer Financial Protection Bureau. The proposed changes not only hurt American consumers, but they also hurt honest car dealers who will be at a competitive disadvantage compared to dishonest car dealers. Adopting your proposed changes will result in a "race to the bottom" that will hurt each of us. I strongly urge you NOT to adopt the proposed changes.