What is the purpose of the Federal Trade Commission Used Car Rule?

The purpose of the Federal Trade Commission Used Car Rule is to protect consumers in used car transactions. This rule mandates that dealers must display a warranty disclosure label on used cars, providing essential details about the vehicle's condition and any warranties that apply. By requiring this transparency, the rule helps potential buyers make informed decisions, minimizing the chances of deceptive practices in the used car market. This consumer protection aspect is crucial, as buying a used car often involves significant financial investment and can sometimes come with hidden problems.

Other aspects such as regulating new car sales, determining warranty lengths, or setting pricing guidelines fall outside the scope of this specific rule, which directly focuses on the used car market and the information that must be provided to consumers.