Is the FTC Making It Easier for Car Dealers to Sell Vehicles with Safety Defects?

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Is the Federal Trade Commission (FTC) really okay with used car dealers selling vehicles with safety defects to unsuspecting consumers? According to a Huffington Post report, that might be the case. Reportedly, the FTC agreed with a recent lawsuit settlement involving a couple of used car dealerships and General Motors (GM).

Under the settlement, which had not yet been finalized as of this writing, used car dealers would be allowed to sell vehicles under safety recall without repairing them first. Car dealers would be allowed to sell vehicles with safety recalls as long as they disclose somewhere in the language of the vehicle contract that the car or truck has been recalled. In addition, to include the disclosure, the contracts would need to state that the recalled car or truck is “safe,” “certified” and “repaired.”

The FTC filed the lawsuit that led to this settlement originally to combat used car dealerships selling vehicles with open recalls. However, many believe this proposed settlement has led to the exact opposite result, which is enabling car dealers to sell unsafe vehicles to consumers without any type of warning. Amongst those who disagree with this settlement, some of the most outspoken include the following:

  • Five US Senators who wrote a letter to the National Highway Traffic Safety Administration (NHTSA) and the FTC regarding how irresponsible and dangerous they believe it is to allow car dealers to sell vehicles with unrepaired recalls.
  • Consumers for Auto Safety and Reliability (CARS), whose president, Rosemary Shahan, spoke out against the settlement. In her statement, she called out the FTC for being complicit in used car dealers selling vehicles under safety recall.

As long as there is a chance that cars with known safety recalls are on the streets, the lives of everyone riding in them or sharing the road with them are in danger. For victims of auto defect accidents and their families, filing a product liability claim is an option for them to get the help they need as they work to make their life whole again.