GNYADA December 2016 Newsletter

FTC Updates Used Car “Buyers Guides” Requirements Dealers can order new stickers from GNYADA

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The FTC’s new “Buyers Guide” window stickers, which must be displayed on used cars before being offered for sale, go into effect January 27, 2017. GNYADA will have updated versions ready for order shortly, through our Dealership Forms Program. If your dealership is running low on Buyers Guides, let us know and we will inform you as soon as new Guides are ready for order. Dealers may use their remaining stock for up to one year after the amended FTC Rule's effective date, which is January 27, 2017. (Failure to post Buyers Guides can lead to fines up to $40,000 per violation.) The revised stickers contain a statement telling consumers that they

can obtain a report on open recalls through the NHTSA website safercar.gov . GNYADA has long advocated for disclosure pertaining to preowned vehicle sales, including possible open recalls, and views this as a positive development for dealers. Buyer's Guide form if the vehicle is still covered by a manufacturer’s warranty or is a “certified” vehicle. Airbags and catalytic converters have been added to the list of potentially defective parts, on the back of the notice. English-language Buyers Guides must now contain a sentence, written in Spanish, directing Spanish-speaking customers to n n Other noteworthy updates: Dealers may indicate on the n

request a Spanish-language Buyers Guide. (Dealers are required to provide Spanish Buyers Guides for transactions conducted in Spanish.) New York law requires dealers to certify that a used vehicle being delivered is “in condition and repair to render, under normal use, satisfactory and adequate service.” Several courts have held that this imposes a mandatory warranty on the sale of a used car by a dealer that cannot be waived or canceled by selling a car “As Is”. The Association thanks Stuart A. Rosenthal, Esq. for his contributions to this article. For any other questions about these updates to the Buyers Guides or to order new stock (once available), please call the Association: 718.746.5900.

5 Avoid Credit Card Slipups Your dealership must be compliant with state and federal laws concern- ing credit card receipts. Both New York State law and the federal gov- ernment require that any receipts you provide to customers in credit card transactions contain only a shortened (or truncated) version of the credit card account number. ing the consumer’s personal information, such as his or her address or telephone

given to the consumer. The Fair and Accurate Transaction Act (FACT Act) has similar requirements. New York law also prohibits record-

Penalties vary, but can be as high as $1,000 per violation for repeat viola- tions under the state law. Penalties under the FACT Act can be in the tens of thousands per violation.

number, on the receipt or an attached form, unless such information is necessary for shipping, delivery or installation of purchased merchandise or for special orders. Recording a credit card number on a check or money order is also prohibited.

New York law requires merchants who accept credit or debit cards to use carbonless paper. Merchants who print receipts electronically may only print the last 5 digits of the card number on the form given to the con- sumer and must not print the expira- tion date of the card on any receipt

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2016 5