Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC approves amendments to Used Automobile Parts Guides, (Jul 8, 2014)

By Linda O’Brien, J.D., LL.M.

Following a public comment period, the FTC has approved amendments to its Used Automobile Parts Guides, which are designed to prevent the unfair or deceptive marketing of used motor vehicle parts and assemblies containing used parts, it was announced today. The amendments to the Guides will be effective on August 22, 2014.

The "Guides for the Rebuilt, Reconditioned and Other Used Automobile Parts Industry" declare certain acts and practices to be unfair or deceptive under the FTC Act, including misrepresenting that an industry product is new or the amount of use of an industry product, misrepresenting the identity of anyone who worked on an industry product after its removal from the original vehicle, and misrepresenting its condition or the amount of work done to it after its removal from the original vehicle. The Guides refer to such parts and assemblies as "industry products."

In May 2012, the FTC sought public comment on the costs, benefits, need for, and regulatory and economic impact of the Guides as part of its systematic regulatory review of all current FTC rules and guides. After considering the comments, the Commission decided to retain and amend the Guides. Significant amendments include providing that the term "remanufactured," like the term "factory rebuilt," should be used only if the product was rebuilt "at a factory generally engaged in the rebuilding of such products"; applying the Guides to used tires; and shortening and updating the sample list of parts that may be industry products.

The Commission vote approving the amendments to the Used Auto Parts Guides was 5-0.

News: ConsumerProtection FederalTradeCommissionNews