Used-car Loophole for Recalls Tightens Up

The article discusses ongoing enforcement battles between and among the Federal Trade Commission (“FTC”), manufacturers and dealers regarding the ability to sell used cars subject to a recall.  Notwithstanding the lack of support under the law, recent FTC enforcement actions against General Motors and two major dealership groups resulted in settlements that prohibit selling used vehicles without disclosing that there may be open recalls.

Aaron commented, “It appears that in the bigger picture the FTC is seeking to implement a requirement for disclosure. By piecing together these enforcement actions they’re trying to create a policy that’s based more on fear of enforcement than a legislated prohibition.”

To read the Automotive News article, click here.