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Pennsylvania AG strengthens Automotive Industry Trade Practices regulation

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Legal
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Pennsylvania’s Attorney General (OAG) recently announced an amendment to the state’s Automotive Industry Trade Practices regulation that provides additional protections for consumers shopping for and purchasing used vehicles. 

The amendment adds language that regulates online advertising. This includes requiring advertised vehicles to have an inspection within 30 days of entering the dealer’s inventory. Another inspection must happen if the vehicle accumulates 500 miles or more while in the inventory, the amendment says

“The OAG has further identified that the disclosures and inspections which motor vehicle dealers are currently required to perform are insufficient to fully inform consumers that they are purchasing motor vehicles bearing certain unsafe conditions,” the amendment says. “The OAG has determined that this final-form rulemaking under the act will remedy these vacuums under Commonwealth law.”

The amendement requires dealers to disclose in writing any unsafe conditions with the vehicle including flood damage or a bent frame, a press release from the Attorney General says. The disclosure is required even on vehicles sold “as is.” 

“These sensible updates to Pennsylvania’s Automotive Regulations will make the process of purchasing a new vehicle more transparent,” said Attorney General Michelle Henry, in the release. “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.”

The amendment became effective Aug. 19. It notes certain transactions are exempt from the law including sales between vehicle dealers, sales under duly authorized vehicle auction licenses, the sale of unsalvageable or unrepairable vehicles bearing the applicable certificate, and sales for vehicles located outside of the state during the time the vehicle was advertised. 

According to the amendment, the OAG has received more than 150,500 written consumer complaints between Jan. 1, 2019 and Dec. 18, 2023. About 22,000 or 15% of those complaints represented consumers with concerns about motor vehicles.

It says motor vehicle complaints represent one of the most common categories of consumer complaint year to year. This includes 6,500 complaints address by the amendment, it says.

Last month, a Michigan TV network investigated the sale of a used vehicle to a mother who learned her used vehicle needed $13,000 in repairs.

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