[Federal Register Volume 63, Number 67 (Wednesday, April 8, 1998)]
[Proposed Rules]
[Pages 17132-17133]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9206]


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FEDERAL TRADE COMMISSION

16 CFR Part 20


Guides for the Rebuilt, Reconditioned, and Other Used Automobile 
Parts Industry

AGENCY: Federal Trade Commission.

ACTION: Request for public comments.

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SUMMARY: The Federal Trade Commission (``Commission'') requests public 
comments about the overall costs and benefits and the continuing need 
for its Guides for the Rebuilt, Reconditioned and Other Used Automobile 
Parts Industry (``the Used Auto Parts Guides'' or ``the Guides''), as 
part of the Commission's systematic review of all current Commission 
regulations and guides.

DATES: Written comments will be accepted until August 6, 1998.

ADDRESSES: Mailed comments should be directed to: Secretary, Federal 
Trade Commission, Room H-159, Sixth Street and Pennsylvania Ave., N.W., 
Washington, DC 20580. Mailed comments should be identified as ``Used 
Auto Parts Guide, 16 CFR part 20--Comment.'' E-mail comments will be 
accepted at [[email protected]]. Those who comment by e-mail should give 
a mailing address to which an acknowledgment can be sent.

FOR FURTHER INFORMATION CONTACT:
David Plottner, Investigator, Federal Trade Commission, 1111 Superior 
Avenue, Suite 200, Cleveland, Ohio 44114, telephone number (216) 263-
3409, E-mail [[email protected]].

SUPPLEMENTARY INFORMATION: 

I. Used Auto Parts Guides

    The Commission first promulgated its Trade Practice Rules For The 
Rebuilt, Reconditioned and Other Used Automotive Parts Industry on June 
30, 1962, under Section 5 of the Federal Trade Commission Act (``FTC 
Act''), 15 U.S.C. 45.\1\ In 1977, the Commission published its intent 
to rescind many of its Trade Practice Rules, including this one, 
barring a showing of continued use in the public interest, 42 FR 31457. 
In 1979, the Commission issued the Guides in their present form, with 
only minor changes from the original Trade Practice Rule (``TPR'').
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    \1\ Section 5 of the FTC Act declares unfair methods of 
competition and unfair or deceptive acts or practices to be 
unlawful.
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    The Guides, and the predecessor to Guides, Trade Practice Rules, 
constitute administrative interpretations of Commission law 
administered by the Commission for the guidance of the public in 
conducting its affairs in conformity with legal requirements. Conduct 
inconsistent with the Guides may result in corrective action by the 
Commission under applicable statutory provisions.
    The Used Auto Parts Guides define industry products broadly to 
include not only automobile parts, but all truck, tractor, motorcycle 
and other self-propelled vehicle parts and assemblies containing used 
parts. Besides automobile parts themselves, large diesel engines, 
clutches and transmissions found in the heavy equipment industry are 
covered by the Guides, for example, as well as used parts and 
assemblies for snow mobiles, jet skies, motorbikes, and golf carts. 
Industry members are those who sell or distribute industry product. 
This would include the rebuilders and remanufacturers themselves, 
assuming such rebuilders/remanufacturers were also involved in product 
sales and distribution. The Used Auto Parts Guides suggest, among other 
things, that industry members not misrepresent that their products are 
new, not misrepresent the condition of the product or the extent of 
rebuilding, not misrepresent that the rebuilder was the original 
manufacturer, and that they conspicuously disclose, for example, in 
advertising and packaging, that the products include used parts.
    Specifically, the Guides suggest that industry members not engage 
in:
    (1) Deception as to the previous use of products;
    (2) Deception as to the identity of the rebuilder, remanufacturer, 
reconditioner or reliner;
    (3) Misrepresentation as to the condition of products and misuse of 
the terms ``rebuilt,'' ``factory rebuilt,'' ``remanufactured,'' or 
other similar terms.

II. Regulatory Review Program

    The Commission has determined, as part of its oversight 
responsibilities, to review rules and guides periodically. These 
reviews seek information about the costs and benefits of the 
Commission's rules and guides and their regulatory and economic impact. 
The information obtained assists the Commission in identifying rules 
and guides that warrant modification or rescission. The Commission 
solicits comments on, among other things, the economic impact of and 
the continuing need for the Used Auto Parts Guides; possible conflict 
between the Guides and state, local, or other federal laws; and the 
effect on the Guides of any technological, economic, or other industry 
changes.

III. Request for Comment

    The Commission solicits written public comments on the following 
questions:
    (1) Is there a continuing need for the Used Auto Parts Guides?
    (a) What benefits have the Guides provided to purchasers of the 
products affected by the Guides?
    (b) Have the Guides imposed costs on purchasers?
    (2) What changes, if any, should be made to the Guides to increase 
the benefits of the Guides to purchasers?
    (a) How would these changes affect the costs the Guides impose on 
firms following their suggestions? How would these changes affect the 
benefits to purchasers?
    (3) What significant burdens or costs, including costs of 
compliance, have the Guides imposed on firms following their 
suggestions?
    (a) Have the Guides provided benefits to such firms? If so, what 
benefits?
    (4) What changes, if any, should be made to the Guides to reduce 
the burdens or costs imposed on firms following their suggestions?

[[Page 17133]]

    (a) How would these changes affect the benefits provided by the 
Guides?
    (5) Do the Guides overlap or conflict with other federal, state, or 
local laws or regulations?
    (a) Have the existence of or the terms of written warranties 
largely replace the Guides as a signal of the quality of an industry 
part or assembly?
    (b) Have state consumer protection laws or regulations governing 
automobile service and automobile service facilities, designation of 
used parts, return of repaired parts, etc. affected the need for these 
Guides?
    (6) Since 1962 when the main provisions of the Guides were issued 
as a TPR, what effects, if any, have the following changes in relevant 
technology or economic conditions had on the Guides:
    (a) Increased sales of imported new automobiles?
    (b) The global nature of the economy?
    (c) Changes in methods of parts distribution? or
    (d) Other changes in distribution or sales, including use of E-
mail, the Internet, Internet advertising or CD ROM advertising.
    (7) Are there any abuses occurring in the distribution, promotion, 
sale or manufacture of used automobile parts that are not addressed by 
the Guides? If so, what mechanisms should be explored to address such 
abuses (e.g., consumer education, industry self-regulation, Guide 
amendment)?

List of Subjects in 16 CFR Part 20

    Advertising, Motor vehicles, Trade practices.

    Authority: 15 U.S.C. 41-58.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 98-9206 Filed 4-7-98; 8:45 am]
BILLING CODE 6750-01-M