New inspection laws for automotive dealers were recently enacted in Pennsylvania.
Attorney General Michelle Henry announced an amendment to the Pennsylvania Automotive Industry Trade Practices regulations went into effect on Aug. 19 requiring dealers to inspect a vehicle for unsafe conditions within 30 days of when it enters their inventory. If a vehicle accumulates 500 or more miles on the dealer lot, it has to be inspected again before it’s sold.
If a dealer finds any of the unsafe conditions listed in the amendment, such as a flood-damaged vehicle or a vehicle with a bent frame, they will be required to disclose them in writing prior to sale. This written disclosure is required even if the motor vehicle is being sold “As Is.”
AG’s Comments
The amendment modernizes the regulatory definition of “advertisement” to clearly include online statements and representations, according to Henry. Dealers were sent a bulletin last month about the change.
“These sensible updates to Pennsylvania’s Automotive Regulations will make the process of purchasing a new vehicle more transparent,” Henry said in a press statement.
“My office has worked closely with the public and regulatory agencies in finalizing these much-needed changes to deal with one of the largest sources of consumer complaints that our Bureau of Consumer Protection receives each year.”
CARS Rule Stalemate
The Pennsylvania revision comes as the federal CARS Rule remains in limbo. The Federal Trade Commission (FTC) issued an order Jan. 18 postponing the effective date of the Combatting Auto Retail Scams (CARS) Rule as a legal challenge makes its way through the courts.
The CARS Rules will require up-front pricing in dealers’ advertising and sales discussions as well as baring the sale of add-on products or services that confer no benefit to consumers. The new rules, passed on Dec. 12, 2023, were slated to go into effect July 30.
The enforcement delay is in response to the lawsuit filed by the National Automobile Dealers Association (NADA) and Texas Automobile Dealers Association in the 5th U.S. Circuit Court of Appeals. The plaintiffs have petitioned to overturn the rule as well as asking for a stay while the court challenge is pending.
