FTC revisits Magnuson Moss Warranty Act and other federal rules

FTC revisits Magnuson Moss Warranty Act and other federal rules

[I]Commission will hold last hearing on dealer F&I practices in November in DC[/I]

As part of a systematic review of all rules and guides in its regulatory purview, the Federal Trade Commission is looking for public comments on its existing interpretations of the Magnuson-Moss Warranty Act. This review process also includes the FTC revisiting its rules governing Disclosure of Written Consumer Product Warranty Terms and Conditions; Pre-Sale Availability of Written Warranty Terms; and Informal Dispute Resolution Procedures. FTC at the same time will review its Guides for the Advertising of Warranties and Guarantees.

The comprehensive analysis stems from new directives the commission was given under Finance Reform as it relates to dealer activity. NADA is currently reviewing whether to provide comments and is also carefully watching the proceedings to ensure dealer rights are protected.

Among the issues NADA may comment on are;

Possible conflicts between the Guides and state law requirements?

The interpretation of the Mag-Moss tying prohibition? An explanation of this concept can be viewed here.

Possibly amending the guides to address service contracts?

Allowing for warranty documents to be delivered/ accessible electronically in connection with online commerce?

A review of the informal dispute settlement mechanism requirements of Rule 703 in light of state lemon laws.

Some good information for dealers on these issues can be read here.

FTC Roundtable on Dealer Financing planned for November in Washington

The Federal Trade Commission will hold its third and final roundtable discussion regarding auto dealer financing practices on November 17, 2011 in Washington, D.C. The FTC held two other roundtable panels earlier this year in April and August.

The discussions stem from the FTCs mandate from Congress to utilize recently enhanced rule making authority over dealer-assisted auto financing after Congress exempted auto dealers from being included in the Consumer Financial Protection Bureau (CFPB), borne out of the Dodd-Frank Finance Reform law.

Download Bulletin PDF