[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1283 Introduced in House (IH)]






108th CONGRESS
  1st Session
                                H. R. 1283

 To protect automobile consumers by requiring complete disclosure and 
   warranty of any add-ons included with the sale of new automobiles.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 13, 2003

Mr. Meeks of New York introduced the following bill; which was referred 
                to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
 To protect automobile consumers by requiring complete disclosure and 
   warranty of any add-ons included with the sale of new automobiles.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

     This Act may be cited as the ``New Automobile Add-On Disclosure 
and Consumer Protection Act''.

SEC. 2. DISCLOSURES FOR PURCHASERS OF NEW AUTOMOBILES.

     In accordance with regulations prescribed by the Federal Trade 
Commission under section 5, a dealer shall provide, to each consumer 
that purchases a new automobile from the dealer the following (with 
respect to each automobile):
            (1) Dealer add-on invoice.--With respect to the particular 
        new automobile purchased by a consumer from the new car dealer, 
        an invoice (separate from any other document) that contains the 
        following:
                    (A) A description of any add-on included with (or 
                included in the total price of) the new automobile.
                    (B) The consumer's request, consent, or agreement 
                for provision by the dealer of any add-ons itemized 
                under subparagraph (A).
                    (C) With respect to any add-ons itemized under 
                subparagraph (A), the following itemized:
                            (i) The cost to the dealer of each add-on 
                        and the total cost to the dealer for all add-
                        ons.
                            (ii) The cost to the consumer of each add-
                        on and the total cost to the consumer for all 
                        add-ons, excluding any applicable taxes.
                            (iii) Any applicable taxes imposed on the 
                        consumer for each add-on and the total amount 
                        of such taxes for all add-ons.
            (2) Dealer add-on warranty statement.--With respect to the 
        particular new automobile purchased by a consumer from the new 
        car dealer, a warranty statement (separate from any other 
        document) that contains the following:
                    (A) A description of any written warranty or 
                service contract provided by a warrantor, the dealer, 
                or a third party with respect to any add-on itemized 
                under paragraph (1)(A).
                    (B) A description of any effect on a written 
                warranty or service contract described under 
                subparagraph (A) that results from the installation, 
                modification, or provision of an add-on, including by a 
                third party.
                    (C) A description of any effect an add-on itemized 
                under paragraph (1)(A) has on a written warranty of the 
                new automobile as originally manufactured, including--
                            (i) the extent of such effect; and
                            (ii) the extent to which (and manner in 
                        which) the dealer will cover any disparity 
                        between any written warranty for the automobile 
                        as originally manufactured and the written 
                        warranty for the automobile as affected by any 
                        add-ons.
                    (D) Information (including separate documentation, 
                if applicable) sufficient for the consumer to utilize 
                or otherwise take advantage of any warranty described 
                under subparagraphs (A) through (C).
                    (E) A statement of the extent to which (and manner 
                in which) the dealer will cover any disparity between 
                any warranty for an add-on, or for the automobile as 
                originally manufactured, and any such warranty actually 
                provided to the customer.
            (3) Timing of disclosure.--The invoice required by 
        paragraph (1) and warranty statement required by paragraph (2) 
        shall be provided to the consumer--
                    (A) for any add-ons included with the automobile up 
                to the time in which the sale of the automobile is 
                finalized, at the time in which the sale is finalized; 
                and
                    (B) for any add-ons included with the automobile 
                after the time the sale is finalized and up to the time 
                in which the automobile is delivered to the consumer, 
                at the time in which the automobile is delivered to the 
                consumer.

SEC. 3. ENFORCEMENT.

    (a) Civil Penalty.--A dealer that violates section 2 shall be 
liable to the United States for a civil penalty of not more than 
$10,000 or the total cost of the new automobile involved (including 
add-ons, taxes, and any other fees charged to the customer by the 
dealer), whichever is greater. The Federal Trade Commission may enforce 
a civil penalty under this subsection in a civil action in an 
appropriate district court of the United States.
    (b) Private Right of Action.--A consumer aggrieved by a violation 
of this Act may bring in an appropriate district court of the United 
States or, if otherwise permitted by the laws or rules of court of a 
State, in an appropriate court of that State--
            (1) a civil action to enjoin a violation of this Act;
            (2) a civil action to recover--
                    (A) the greater of actual monetary loss or $10,000 
                in damages for each such violation;
                    (B) up to three times the amount described in 
                subparagraph (A), to be determined in the discretion of 
                the court, if the court finds that the defendant 
                willfully or knowingly committed such violation; and
                    (C) a reasonable attorney fee and the costs of the 
                action; or
            (3) both such actions.
    (c) Limitation.--Nothing in this Act shall prohibit the enforcement 
of any State laws or regulations relating to the sale of automobiles, 
or requiring the disclosure of information regarding automobiles to the 
consumer.

SEC. 4. DEFINITIONS.

     In this Act:
            (1) The term ``add-on'' means, with respect to a new 
        automobile purchased from a dealer by a consumer--
                    (A) any motor vehicle equipment (as such term is 
                used in section 30102(a) of title 49, United States 
                Code) that is--
                            (i) not a system, part, or component of the 
                        new automobile as originally manufactured; and
                            (ii) not itemized on the label required 
                        under section 3 of the Automobile Information 
                        Disclosure Act (15 U.S.C. 1232);
                    (B) any modification of the new automobile, or of 
                any motor vehicle equipment provided as a system, part, 
                or component of the new automobile as originally 
                manufactured, that is performed by, or on behalf of, 
                the dealer;
                    (C) any written warranty or service contract 
                provided by a warrantor, the dealer, or a third party 
                (other than the manufacturer); or
                    (D) any service provided by, or on behalf of, the 
                dealer to the consumer that is--
                            (i) related to any equipment described in 
                        subparagraph (A) (including installation) or to 
                        a modification described in subparagraph (B);
                            (ii) not included in the cost of such 
                        equipment or modification; and
                            (iii) not a financial service.
            (2) The term ``consumer'' has the meaning given the term 
        ``ultimate purchaser'' in section 2 of the Automobile 
        Information Disclosure Act (15 U.S.C. 1231).
            (3) The term ``dealer'' has the meaning given that term in 
        section 30102(a) of title 49, United States Code.
            (4) The terms ``manufacturer'' and ``new automobile'' have 
        the meanings given those terms in section 2 of the Automobile 
        Information Disclosure Act (15 U.S.C. 1231).
            (5) The terms ``service contract'', ``warranty'', and 
        ``warrantor'' have the meanings give those terms in section 101 
        of the Magnuson-Moss Warranty--Federal Trade Commission 
        Improvement Act (15 U.S.C. 2301), except that any reference to 
        a consumer product shall be deemed to be a reference to a new 
        automobile or an add-on.

SEC. 5. RULEMAKING.

    Within 180 days following the enactment of this Act, the Federal 
Trade Commission shall prescribe regulations to carry out this Act, 
including guidelines setting forth a uniform method by which a dealer 
may provide the disclosures required by section 2.

SEC. 6. EFFECTIVE DATE.

     This Act shall take effect 30 days following the issuance of a 
final rule by the Federal Trade Commission pursuant to section 5.
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