Safety Groups Question FTCs Changes to Certified Pre-Owned Designation
Recent changes to the Federal Trade Commission's (FTC) certified pre-owned vehicle designation has the Center for Auto Safety and five other consumer and safety groups questioning the FTC's commitment to consumer protection. The FTC reached an agreement last year with General Motors and two other dealerships, which would allow them to advertise automobiles as certified pre-owned (CPO) even though they might have a safety recall that still needs to be fixed. According to the agency, companies will be required to disclose any unfixed safety recalls to the buyer.
The groups suing the FTC say that dealerships could previously sell vehicles with dangerous, unaddressed safety recalls, but allowing them to designate them as CPO will only permit dishonest auto dealers to engage in false and deceptive advertising about the safety of the vehicles they are selling.