FEDERAL TRADE COMMISSION USED CAR RULE

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16 CFR  § 455.2 Ch. I (1–1–03 Edition)

PART 455--USED MOTOR VEHICLE TRADE REGULATION RULE--Table of Contents
 
Sec. 455.1  General duties of a used vehicle dealer; definitions.

    (a) It is a deceptive act or practice for any used vehicle dealer, when that dealer sells or offers for sale a used vehicle in or affecting
commerce as commerce is defined in the Federal Trade Commission Act:
    (1) To misrepresent the mechanical condition of a used vehicle;
    (2) To misrepresent the terms of any warranty offered in connection
with the sale of a used vehicle; and
    (3) To represent that a used vehicle is sold with a warranty when
the vehicle is sold without any warranty.

    (b) It is an unfair act or practice for any used vehicle dealer,
when that dealer sells or offers for sale a used vehicle in or affecting
commerce as commerce is defined in the Federal Trade Commission Act:
    (1) To fail to disclose, prior to sale, that a used vehicle is sold without any warranty; and
    (2) To fail to make available, prior to sale, the terms of any
written warranty offered in connection with the sale of a used vehicle.

    (c) The Commission has adopted this Rule in order to prevent the unfair and deceptive acts or practices defined in
paragraphs (a) and (b). It is a violation of this Rule for any used vehicle dealer to fail to comply with the requirements
set forth in Secs. 455.2 through 455.5 of this part. If a used vehicle dealer complies with the requirements of
Secs. 455.2 through 455.5 of this part, the dealer does not violate this Rule.

    (d) The following definitions shall apply for purposes of this part:

    (1) Vehicle means any motorized vehicle, other than a motorcycle, with a gross vehicle weight rating (GVWR) of
less than 8500 lbs., a curb weight of less than 6,000 lbs., and a frontal area of less than 46 sq.
ft.

    (2) Used vehicle means any vehicle driven more than the limited use necessary in moving or road testing a new vehicle
prior to delivery to a consumer, but does not include any vehicle sold only for scrap or parts (title documents
surrendered to the State and a salvage certificate issued).

    (3) Dealer means any person or business which sells or offers for sale a used vehicle after selling or offering
for sale five (5) or more used vehicles in the previous twelve months, but does not include a bank or financial institution,

 a business selling a used vehicle to an
employee of that business, or a lessor selling a leased vehicle by or to
that vehicle's lessee or to an employee of the lessee.
    (4) Consumer means any person who is not a used vehicle dealer.
    (5) Warranty means any undertaking in writing, in connection with
the sale by a dealer of a used vehicle, to refund, repair, replace,
maintain or take other action with respect to such used vehicle and
provided at no extra charge beyond the price of the used vehicle.
    (6) Implied warranty means an implied warranty arising under State
law (as modified by the Magnuson-Moss Act) in connection with the sale
by a dealer of a used vehicle.
    (7) Service contract means a contract in writing for any period of
time or any specific mileage to refund, repair, replace, or maintain a
used vehicle and provided at an extra charge beyond the price of the
used vehicle, provided that such contract is not regulated in your State
as the business of insurance.
    (8) You means any dealer, or any agent or employee of a dealer,
except where the term appears on the window form required by
Sec. 455.2(a).


§ 455.2 Consumer sales—window form.
 

(a) General duty. Before you offer a used vehicle for sale to a consumer, you must prepare, fill in as applicable
and display on that vehicle a ‘‘Buyers Guide’’ as required by this Rule.

(1) The Buyers Guide shall be displayed prominently and conspicuously in any location on a vehicle and in
such a fashion that both sides are readily readable. You may remove the form temporarily from the vehicle during
any test drive, but you must return it as soon as the test drive is over.

(2) The capitalization, punctuation and wording of all items, headings, and text on the form must be exactly as required
by this Rule. The entire form must be printed in 100% black ink on a white stock no smaller than 11 inches
high by 71⁄4 inches wide in the type styles, sizes and format indicated.
 

When filling out the form, follow the directions in (b) through (e) of this sectionand § 455.4 of this part.
 

(b) Warranties—(1) No Implied Warranty—‘‘ As Is’’/No Warranty. (i) If you
offer the vehicle without any implied warranty, i.e., ‘‘as is,’’ mark the box provided. If you offer the vehicle with
implied warranties only, substitute the disclosure specified below, and mark the box provided. If you first offer the
vehicle ‘‘as is’’ or with implied warranties only but then sell it with a warranty, cross out the ‘‘As Is—No Warranty’’
or ‘‘Implied Warranties Only’’ disclosure, and fill in the warranty terms in accordance with paragraph
(b)(2) of this section.

(ii) If your State law limits or prohibits ‘‘as is’’ sales of vehicles, that State law overrides this part and this
rule does not give you the right to sell ‘‘as is.’’ In such States, the heading ‘‘As Is—No Warranty’’ and the paragraph
immediately accompanying that phrase must be deleted from the form,  See § 455.5 n. 4 for the Spanish version of
this disclosure.

2 A ‘‘Full’’ warranty is defined by the Federal Minimum Standards for Warranty set forth in 104 of the Magnuson-Moss Warranty
Act, 15 U.S.C. 2304 (1975). The Magnuson-Moss Warranty Act does not apply to vehicles manufactured before July 4, 1975. Therefore,
if you choose not to designate ‘‘Full’’ or ‘‘Limited’’ for such cars, cross out both designations, leaving only ‘‘Warranty’’.
3

See § 455.5 n. 4 for the Spanish version of this disclosure and the following heading and paragraph must be substituted. If you sell
vehicles in States that permit ‘‘as is’’sales, but you choose to offer implied warranties only, you must also use the
following disclosure instead of ‘‘As Is—No Warranty’’: IMPLIED WARRANTIES ONLY This means that the dealer does not make
any specific promises to fix things that need repair when you buy the vehicle or after the time of sale. But, State law ‘‘implied warranties’’
may give you some rights to have the dealer take care of serious problems that were not apparent when you bought the vehicle.
(2) Full/Limited Warranty. If you offer the vehicle with a warranty, briefly describe the warranty terms in the space provided.
This description must include the following warranty information:
|(i) Whether the warranty offered is ‘‘Full’’ or ‘‘Limited.’’ 2 Mark the box next to the appropriate designation.
(ii) Which of the specific systems are covered (for example, ‘‘engine, transmission, diffential’’). You cannot use
shorthand, such as ‘‘drive train’’ or ‘‘power train’’ for covered systems.
(iii) The duration (for example, ‘‘30 days or 1,000 miles, whichever occurs first’’).
(iv) The percentage of the repair cost paid by you (for example, ‘‘The dealer will pay 100% of the labor and 100% of
the parts.’’)
(v) If the vehicle is still under the manufacturer’s original warranty, you may add the following paragraph below
the ‘‘Full/Limited Warranty’’ disclosure:
 

MANUFACTURER’S WARRANTY STILL APPLIES. The manufacturer’s original warranty has not expired on
the vehicle. Consult the manufacturer’s warranty booklet for details as to warranty coverage, service location,
etc.
If, following negotiations, you and the buyer agree to changes in the warranty coverage, mark the changes on the
form, as appropriate. If you first offer the vehicle with a warranty, but then sell it without one, cross out the offered
warranty and mark either the ‘‘As Is—No Warranty’’ box or the ‘‘Implied Warranties Only’’ box, as appropriate.
(3) Service contracts. If you make a service contract (other than a contract that is regulated in your State as the
business of insurance) available on the vehicle, you must add the following heading and paragraph below the ‘‘Full/
Limited Warranty’’ disclosure and mark the box provided. 3bService Contract

A service contract is available at an extra charge on this vehicle. If you buy a service contract within 90 days of the time of sale,
State law ‘‘implied warranties’’ may give you additional rights.

(c) Name and Address. Put the name and address of your dealership in the space provided. If you do not have a
dealership, use the name and address of your place of business (for example, your service station) or your own name
and home address.

(d) Make, Model, Model Year, VIN. Put the vehicle’s name (for example,‘‘Chevrolet’’), model (for example,
‘‘Vega’’), model year, and Vehicle Identification Number (VIN) in the spaces provided. You may write the dealer
stock number in the space provided or you may leave this space blank.

(e) Complaints. In the space provided, put the name and telephone number of the person who should be contacted if
any complaints arise after sale.

(f) Optional Signature Line. In the space provided for the name of the individual to be contacted in the event of
complaints after sale, you may include a signature line for a buyer’s signature. If you opt to include a signature line,
you must include a disclosure in immediate proximity to the signature line stating: ‘‘I hereby acknowledge receipt
of the Buyers Guide at the closing

§ 455.3 16 CFR Ch. I (1–1–03 Edition) 4 Use the following language for the ‘‘Implied Warranties Only’’ disclosure when required
by § 455.2(b)(1):
Garantı´as implicı´tas solamente Este te´rmino significa que el vendedor nohace promesas especı´ficas de arreglar lo que
requiera reparacio´n cuando usted compra el vehı´culo o despue´s del momento de la venta.Pero, las ‘‘garantı´as implı´citas’’ de la ley
estatal pueden darle a usted algunos derechos y hacer que el vendedor resuelva problemas graves que no fueron evidentes
cuando usted compro´ el vehı´culo. Use the following language for the ‘‘Service Contract’’ disclosure required by

Window Form§ 455.2(b)(3):

CONTRATO DE SERVICIO. Este vehı´culo tiene disponible un contrato de servicio a un precio adicional. Pida los detalles en cuanto
a cobertura, deducible, precio y exclusiones.Si adquiere usted un contrato de servicio dentro de los 90 dı´as del momento de la
venta, las ‘‘garantı´as implı´citas’’ de acuerdo a la ley del estado pueden

keywords, FTC used car rule, FTC provisions, deception, fraud, FTC rules, consumer fraud, deceptive practice, federal regulation