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Certified Pre-Owned Cars Decision Prompts Consumer Groups to Sue FTC

Among the six groups filing a lawsuit against the Federal Trade Commission (FTC) over a decision regarding certified pre-owned cars (CPO), The Center for Auto Safety takes issue with allowing dealers to advertise cars facing a safety recall as CPO. Co-plaintiffs in the suit are Consumers for Auto Reliability and Safety, and the U.S. Public Interest Research Group and its state affiliates in Massachusetts, Connecticut and California.

Last month, the FTC announced an agreement with General Motors, as well as two dealer groups (Jim Koons Management and Lithia Motors Inc.), allowing vehicles covered by a safety recall to be advertised as certified pre-owned as long as the recalled defect has been repaired or the ad includes a disclaimer disclosing the existence of the recalls. Moreover, the FTC action also mandated that recent customers be informed by mail that the vehicles they purchased may have an open recall.

Those filing action against the FTC don’t think its orders go far enough in protecting consumers. According to the trade industry publication Automotive News, a spokesperson for Consumers for Auto Reliability and Safety took issue with the FTC finding, saying it does more to protect unscrupulous auto dealers than consumers.

Russ Heaps
Russ Heaps is an author specializing in automotive, financial and travel news. For nearly 35 years he has covered the automotive industry for newspapers, magazines and internet websites. His resume includes The Palm Beach Post, Miami Herald, The Washington Times and numerous other daily newspapers through syndication. He edited Auto World magazine, and helped create and edit NOPI Street... Read More about Russ Heaps

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