Implementing the Used Car Rule Initiative for Auto Dealerships

The Federal Trade Commission ("FTC") Used Car Rule and the Federal Odometer Act ("FOA") require the company to disclose certain information to its customers in connection with its sale of new and used vehicles. You are subject to the Used Car Rule if the company offers to sell more than 5 used vehicles within a 12 month period.  The Rule does not apply to cars sold for scrap, large trucks, ATVs, and motorcycles.

Under the Used Car Rule, you may not:

• misrepresent the mechanical condition of the vehicle;
• misrepresent the terms of a warranty;
• represent that the vehicle is sold with a warranty if it is not;
• fail to disclose that the vehicle is not sold with a warranty prior to the sale; and
• fail to make available the terms of any written warranty offered in connection with the sale prior to the sale.

It is important for you to comply with the Used Car Rule and the FOA because the company may be subject to civil and criminal penalties for any failure to comply. The FTC is authorized to impose civil penalties of up to $16,000 per violation of the Used Car Rule. For violating the FOA, the company may be subject to a civil penalty of up to $2,000 per violation, criminal fines, imprisonment for up to three years, and/or reasonable attorneys' fees. In addition, your state Attorney General is authorized to bring an enforcement action for the greater of three times the actual damages, or $1,500, if the company acted with intent to defraud. Please note that you may be subject to these penalties if you completed the odometer disclosure on behalf of your customer.

Implementation Steps in this Guide

1. Edit and Distribute the FTC Used Car Rule and Federal Odometer Act Policy

2. Distribute the FTC Used Car Rule and Federal Odometer Act Assessment

3. Schedule the FTC Used Car Rule Certification Form for Distribution

Edit and Distribute the FTC Used Car Rule and Federal Odometer Act Policy

Review and edit the policy

1. Click on the Library tab
2. Search for "FTC Used Car Rule and Federal Odometer Act Policy" and click on it
3. Click on the Edit button to view the list of versions
4. Click Create Draft to the right of the latest published version
5. Click Edit next to the Draft version that you just created
6. Make desired changes to the policy
7. Click Publish to finish editing the policy

Schedule the activity for distribution

1. Click on the Workspaces tab
2. Click on the Consumer Finance workspace
3. Click on the Used Car Rule initiative
4. Click on the FTC Used Car Rule and Federal Odometer Act Policy
5. Click on Groups and assign to the appropriate groups, such as All Employees
6. Click on Schedule and set an annual schedule based on the Hire Date. 
7. Click Save

Distribute the FTC Used Car Rule and Federal Odometer Act Assessment

1. Click on the Workspaces tab
2. Click on the Consumer Finance workspace
3. Click on the Used Car Rule initiative
4. Click on Identity Theft Red Flags Assessment for Employees Assessment
5. Click on Groups and assign to the appropriate groups, such as Executive, Ownership, Sales, Finance and Insurance, Cashiers and anyone else who participates in a sales transaction.
6. Click on Schedule and set an annual schedule based on the Hire Date. We recommend that you set the Immediate Distribution option to Yes. 
7. Click Save

Schedule the FTC Used Car Rule Certification Form for Distribution

The company Compliance Officer is required to complete this certification once per quarter so the company can maintain current and accurate records demonstrating compliance with the Federal Trade Commission's Used Car Rule.

Review the Process Workflow

Set the form routing

1. Click on the Admin tab
2. Click on Workflow/Forms subtab
3. Click on Processes
4. Search for and click on the FTC Used Car Rule Certification Form
5. Edit the routing rules for each stage by following these suggestions:
   
   

   Stage	Suggested Routing Rule	Description
   Compliance Officer Section	Subject or Queue	Route to the "Subject" (i.e. the person to whom the system sent this form), or to a queue that contains your Compliance Officer, or equivalent.
   CFO Section	Queue	Route to a queue that contains your Chief Financial Officer, or equivalent.

Schedule the Activity for distribution

1. Click on the Workspaces tab
2. Click on the Consumer Finance workspace
3. Click on the Used Car Rule initiative
4. Click on the FTC Used Car Rule Certification Form
5. Click on Groups and assign to the appropriate group(s), such as your Compliance Officer
6. Click on Schedule and set the appropriate schedule. We suggest a quarterly schedule.  
7. Click Save