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ARTICLE · 23 JULY 2018

FTC Conducts First Compliance Sweep Since Amendment to Used Car Rule

The sweep took place between April and June 2018 in 20 cities nationwide.

United StatesTransport

The Federal Trade Commission announced in mid-July that it conducted the first compliance sweep of car dealerships since the effective date of its revised Used Car Rule requiring use of a new Buyers Guide sticker.  The sweep took place between April and June 2018 in 20 cities nationwide.  The FTC coordinated its efforts with 12 partner agencies in seven states to ensure that dealers are displaying a revised version of the Buyers Guide, which contains warranty and other information for consumers. 

In the sweep, inspectors found that approximately 70 percent of vehicles displayed Buyers Guides and roughly half of those displayed the revised Buyers Guide.  Inspectors reviewed 94 different dealerships and reported that 33 dealerships posted the revised Buyers Guide on more than half of their vehicles, but only 14 dealerships had revised Buyers Guides on all of their used vehicles for sale.  The FTC Act provides for penalties of up to $41,484 per violation for those

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