What does the Federal Trade Commission Used Car Rule state about dealers offering vehicles at public auctions?

The Federal Trade Commission (FTC) Used Car Rule is designed to ensure that consumers receive important information about used vehicles, promoting transparency in the car-buying process. When vehicles are offered at public auctions, this rule mandates that a buyer's guide must be displayed on the vehicle. This requirement is particularly important when the auction is open to the public because it provides potential buyers with essential details about the vehicle's condition, any known defects, and the warranty information, if applicable.

The goal of this requirement is to protect consumers by ensuring they have access to relevant information before making a purchasing decision in a potentially high-pressure environment like a public auction. When the auction is open to everyone, the chance for less-informed buyers increases, making the display of the buyer's guide even more crucial. Thus, having a guide on the vehicle helps level the playing field, allowing all bidders to make informed decisions based on the same set of information.