New Pennsylvania law changes vehicle inspection guidelines

Pennsylvania has amended its Automotive Industry Trade Practices guidelines to include new rules for dealers, which it says will offer better protections for consumers.

Driving the news: Pennsylvania dealers must now adhere to new requirements governing vehicle inspections and online marketing. The amendment adds the following stipulations:

• Dealers must now examine each vehicle within 30 days of adding it to their inventory. Another inspection is due if the vehicle is driven 500 miles before being sold.

• Issues found during the inspection, including flood damage or frame damage, must be disclosed in writing before the car is sold. This is required even if the vehicle is being sold “As Is.”

• The state has also updated the legal definition of the word “advertisement” to include certain online statements or representations.

Zooming out: Pennsylvania’s new rules reflect the intensifying regulatory environment around dealerships in recent years.

• One of the most impactful regulations, the Federal Trade Commission’s Combating Auto Retail Scams (CARS) Act, is currently awaiting oral arguments (set for this October) between dealer associations and FTC lawyers.

• The CARS rule would drastically increase the amount of information dealers must disclose to customers before a sale, with the goal of eliminating unhelpful add-ons.

• It would also require retailers to share a vehicle’s offering price upfront.

Bottom line: As regulatory scrutiny ramps up, dealerships must adapt quickly to mitigate any vulnerabilities. Working with local and national dealer associations can help dealers understand their compliance obligations while representing their voices in the legislative process.

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