Projo Biz Blog

Under current rules, the buyer's guide notices must provide buyers with information on whether the car is offered with a warranty or is being sold "as-is" without a warranty, Lynch said in a statement today. "That information is useful, but it certainly doesn't go far enough," he said.

"Too many people have been victimized by spending their hard-earned money on buying used vehicles that look good but have, in fact, been involved in crashes or trashed by flood waters. Consumer fraud in used car sales is one of the most frequent complaints received by my office, and by attorneys general across the nation. With today's tight economy and credit market spurring sales of used cars, the time is right for the FTC to ensure that further protections are afforded to the consumers choosing to buy them," Lynch said.

In written comments to the FTC, the states said that such damaged vehicles also may pose safety hazards to consumers. "There simply is no excuse for the national buyer's guide to fail to include vehicle history and title brand information," the states said. "That information is readily available to dealers through private data sources and through title records accompanying vehicles they purchase at auction or take in trade. If Wisconsin dealers are required and can determine facts sufficient to make that disclosure, so too should dealers in the rest of the nation."