Suit Filed Challenging FTC Decisions To Allow Sale Of “Certified” Used Cars With Safety Defects

On Monday, February 6, 2017, we filed a Petition for Review in the United States Court of Appeals for the D.C. Circuit challenging recent decisions by the Federal Trade Commission to allow automobile dealers to sell used cars as “certified” without disclosing that such cars are subject to outstanding safety defect recalls or requiring the dealers to fix any such cars.  The case has been brought on behalf of a coalition of auto-safety groups including Consumers for Auto Reliability and Safety (CARS), the Center for Auto Safety, U.S. Public Interest Group, and the California, Connecticut, and Massachusetts Public Interest Research Groups.  The FTC’s Decisions were issued as Consent Decrees settling three administrative actions against General Motors, Jim Koons Management Company, and Lithia Motors, brought under the Federal Trade Commission Act for deceptive and unfair consumer practices.  Rather than fixing the cars before selling them, or disclosing that the cars are subject to safety defect recalls, the FTC is allowing the companies to sell the vehicles as “certified” and safe, as long as they include a disclosure that the cars “may” be subject to a recall.   A recent New York Times story about the issue can be found here.