40 States Seek Fuller Disclosure on Sale of Used Cars

November 25, 2008

Forty states are asking the Federal Trade Commission to toughen its rules on selling used cars that have been in floods or collisions.

Under the current rule, buyers must be told if the car — or SUV or motorcycle — has a warranty or is being sold “as is.” The states want more disclosure about damage to vehicles and whether previous owners complained about it under state “lemon” laws.

New Hampshire Attorney General Kelly Ayotte says fuller disclosure would deter fraud and the information is readily available.

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