Guides for the Rebuilt, Reconditioned, and Other Used Automobile Parts Industry

FEDERAL TRADE COMMISSION

16 CFR Part 20

Guides for the Rebuilt, Reconditioned, and Other Used Automobile

Parts Industry

AGENCY: Federal Trade Commission.

ACTION: Request for public comments.

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SUMMARY: The Federal Trade Commission (``Commission'') requests public

comments about the overall costs and benefits and the continuing need

for its Guides for the Rebuilt, Reconditioned and Other Used Automobile

Parts Industry (``the Used Auto Parts Guides'' or ``the Guides''), as

part of the Commission's systematic review of all current Commission

regulations and guides.

DATES: Written comments will be accepted until August 6, 1998.

ADDRESSES: Mailed comments should be directed to: Secretary, Federal

Trade Commission, Room H-159, Sixth Street and Pennsylvania Ave., N.W.,

Washington, DC 20580. Mailed comments should be identified as ``Used

Auto Parts Guide, 16 CFR part 20--Comment.'' E-mail comments will be

accepted at [[email protected]]. Those who comment by e-mail should give

a mailing address to which an acknowledgment can be sent.

FOR FURTHER INFORMATION CONTACT:

David Plottner, Investigator, Federal Trade Commission, 1111 Superior

Avenue, Suite 200, Cleveland, Ohio 44114, telephone number (216) 263-

3409, E-mail [[email protected]].

SUPPLEMENTARY INFORMATION:

I. Used Auto Parts Guides

The Commission first promulgated its Trade Practice Rules For The

Rebuilt, Reconditioned and Other Used Automotive Parts Industry on June

30, 1962, under Section 5 of the Federal Trade Commission Act (``FTC

Act''), 15 U.S.C. 45.\1\ In 1977, the Commission published its intent

to rescind many of its Trade Practice Rules, including this one,

barring a showing of continued use in the public interest, 42 FR 31457.

In 1979, the Commission issued the Guides in their present form, with

only minor changes from the original Trade Practice Rule (``TPR'').

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\1\ Section 5 of the FTC Act declares unfair methods of

competition and unfair or deceptive acts or practices to be

unlawful.

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The Guides, and the predecessor to Guides, Trade Practice Rules,

constitute administrative interpretations of Commission law

administered by the Commission for the guidance of the public in

conducting its affairs in conformity with legal requirements. Conduct

inconsistent with the Guides may result in corrective action by the

Commission under applicable statutory provisions.

The Used Auto Parts Guides define industry products broadly to

include not only automobile parts, but all truck, tractor, motorcycle

and other self-propelled vehicle parts and assemblies containing used

parts. Besides automobile parts themselves, large diesel engines,

clutches and transmissions found in the heavy equipment industry are

covered by the Guides, for example, as well as used parts and

assemblies for snow mobiles, jet skies, motorbikes, and golf carts.

Industry members are those who sell or distribute industry product.

This would include the rebuilders and remanufacturers themselves,

assuming such rebuilders/remanufacturers were also involved in product

sales and distribution. The Used Auto Parts Guides suggest, among other

things, that industry members not misrepresent that their products are

new, not misrepresent the condition of the product or the extent of

rebuilding, not misrepresent that the rebuilder was the original

manufacturer, and that they conspicuously disclose, for example, in

advertising and packaging, that the products include used parts.

Specifically, the Guides suggest that industry members not engage

in:

(1) Deception as to the previous use of products;

(2) Deception as to the identity of the rebuilder, remanufacturer,

reconditioner or reliner;

(3) Misrepresentation as to the condition of products and misuse of

the terms ``rebuilt,'' ``factory rebuilt,'' ``remanufactured,'' or

other similar terms.

II. Regulatory Review Program

The Commission has determined, as part of its oversight

responsibilities, to review rules and guides periodically. These

reviews seek information about the costs and benefits of the

Commission's rules and guides and their regulatory and economic impact.

The information obtained assists the Commission in identifying rules

and guides that warrant modification or rescission. The Commission

solicits comments on, among other things, the economic impact of and

the continuing need for the Used Auto Parts Guides; possible conflict

between the Guides and state, local, or other federal laws; and the

effect on the Guides of any technological, economic, or other industry

changes.

III. Request for Comment

The Commission solicits written public comments on the following

questions:

(1) Is there a continuing need for the Used Auto Parts Guides?

(a) What benefits have the Guides provided to purchasers of the

products affected by the Guides?

(b) Have the Guides imposed costs on purchasers?

(2) What changes, if any, should be made to the Guides to increase

the benefits of the Guides to purchasers?

(a) How would these changes affect the costs the Guides impose on

firms following their suggestions? How would these changes affect the

benefits to purchasers?

(3) What significant burdens or costs, including costs of

compliance, have the Guides imposed on firms following their

suggestions?

(a) Have the Guides provided benefits to such firms? If so, what

benefits?

(4) What changes, if any, should be made to the Guides to reduce

the burdens or costs imposed on firms following their suggestions?

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(a) How would these changes affect the benefits provided by the

Guides?

(5) Do the Guides overlap or conflict with other federal, state, or

local laws or regulations?

(a) Have the existence of or the terms of written warranties

largely replace the Guides as a signal of the quality of an industry

part or assembly?

(b) Have state consumer protection laws or regulations governing

automobile service and automobile service facilities, designation of

used parts, return of repaired parts, etc. affected the need for these

Guides?

(6) Since 1962 when the main provisions of the Guides were issued

as a TPR, what effects, if any, have the following changes in relevant

technology or economic conditions had on the Guides:

(a) Increased sales of imported new automobiles?

(b) The global nature of the economy?

(c) Changes in methods of parts distribution? or

(d) Other changes in distribution or sales, including use of E-

mail, the Internet, Internet advertising or CD ROM advertising.

(7) Are there any abuses occurring in the distribution, promotion,

sale or manufacture of used automobile parts that are not addressed by

the Guides? If so, what mechanisms should be explored to address such

abuses (e.g., consumer education, industry self-regulation, Guide

amendment)?

List of Subjects in 16 CFR Part 20

Advertising, Motor vehicles, Trade practices.

Authority: 15 U.S.C. 41-58.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 98-9206 Filed 4-7-98; 8:45 am]

BILLING CODE 6750-01-M