Submission Number: 563688-00051
Received: 2/7/2013 3:25:26 PM
Commenter: Jeffrey Crabtree
Organization: Law Offices of jeff Crabtree
Agency: Federal Trade Commission
Initiative: 16 CFR Part 455 Used Motor Vehicle Trade Regulation Rule; Project No. P087604
Attachments: No Attachments
I submitted my comments several weeks ago using this same portal, but my comment do not show up on your list of comments received. That's concerning. I wonder how many other comments "dropped out."
Anyway, my general comment is that this new rule is a mistake. It does not reflect the realities of the usual used car puchase. In fact, it may harm consumers more than it helps them. It will encourage and essentially approve the practice of not disclosing known problems.
First, allowing dealers to "disclose" by putting important provisions on the BACK of trhe form is deceptive. A common tactic is for the salesman to hold down the form while the consumer signs the front side. In fact, you ought to consider a rule that prohibits any material provision from being on the back side of a sales form.
Second, the "As Is" language is just legally wrong for many states. It runs contrary to common law and statutory protections for consumers. The new language is worse for consumers than the current provision.
Third, the no warranty provision is a shield against fraud. AT MINIMUM, dealers must be required to disclose KNOWN defects. Now they will be able to say "The FTC says this is OK."
PLEASE take another look at this. I represent numerous members of our armed services who are absolutely targets for lousy used car purchases. Please don't make it harder for them by enacting this new rule.