[Federal Register Volume 61, Number 128 (Tuesday, July 2, 1996)]
[Notices]
[Pages 34435-34436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16848]


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FEDERAL TRADE COMMISSION


Notice of 30-Day Extension in Comment Period and Change in Date 
for Public Forum on Disclosures in the Resale of Vehicles Repurchased 
Due to Warranty Defects

AGENCY: Federal Trade Commission.

ACTION: Request for public comments.

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SUMMARY: The Federal Trade Commission (``the Commission'' or ``FTC'') 
has extended the date by which comments must be submitted and has 
changed the date for the public forum concerning the practices used in 
the resale of vehicles previously repurchased from consumers because of 
warranty defects. This notice informs prospective participants of the 
changes and sets new dates of July 29, 1996, for the end of the comment 
period and October 3, 1996, for the forum.
    On November 8, 1995, the Consumers for Auto Reliability and Safety 
and other consumer groups (``Consumer Coalition'' or ``Petitioners'') 
filed a petition in which they requested that the Commission initiate 
either a rulemaking proceeding or an

[[Page 34436]]

enforcement action regarding the alleged industry practice of reselling 
vehicles repurchased due to defects without disclosure of the vehicle's 
prior history to the subsequent purchaser. On April 30, 1996, the 
Commission published this petition without endorsing or supporting the 
views expressed therein. In addition to seeking public comment on the 
issues raised by the petition and on other related issues, the 
Commission announced its intention to hold a public forum on July 15, 
1996, to further discuss these issues with the affected interests. In 
order to provide sufficient time for interested parties to compile 
factual material in response to the request for comments, the 
Commission has extended until July 29, 1996, the date by which comments 
must be received. In addition, in order to provide participants with 
sufficient time to review the comments submitted in response to the 
April 30 notice, the Commission has changed the date of the public 
forum to October 3, 1996.

DATES: Notification of interest in participating in the public forum 
must be submitted on or before July 29, 1996. Comments must be received 
by close of business on July 29, 1996. The public forum will be held in 
Washington, D.C. on October 3, 1996, from 9 a.m. until 5 p.m.

ADDRESSES: Notification of interest in participating in the public 
forum should be submitted in writing to Carole I. Danielson, Division 
of Marketing Practices, Federal Trade Commission, Sixth and 
Pennsylvania Ave., N.W., Washington, D.C. 20580. The public forum will 
be held at the Federal Trade Commission, Sixth and Pennsylvania Ave., 
N.W., Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT:
Carole I. Danielson (202) 326-3115, Division of Marketing Practices, 
Bureau of Consumer Protection, Federal Trade Commission, Washington, 
D.C. 20580.

SUPPLEMENTARY INFORMATION: In a petition dated November 3, 1995, the 
Consumer Coalition requested that the FTC either initiate a rulemaking 
proceeding or an enforcement action in connection with the industry 
practice of allegedly reselling vehicles bought back because of defects 
without disclosure to the used car purchaser. The petitioners allege 
that auto manufacturers, their dealers and others are engaged in a 
pattern of conduct (which the petitioners term ``lemon laundering'') 
intended to conceal material information about the vehicle's safety and 
quality history from purchasers of vehicles purchased from consumers as 
a result of alleged defects. The petitioners also allege that this 
pattern of conduct often involves transporting the repurchased vehicles 
across state lines to avoid the operation of state law protections. On 
April 30, 1996, the Commission published a request for comment on the 
issues raised by the petition. (A copy of the petition was appended to 
the notice.) The comment period closes on June 28, 1996. The Commission 
also announced in the April 30 notice its intention of holding a public 
forum on July 15, 1996, to allow Commission staff an opportunity to 
discuss these issues with the various affected interests. The notice 
set forth the criteria by which such affected interests would be 
chosen.
    Many of the prospective participants in the public forum have 
expressed concerns that there will not be sufficient time to complete 
compilation of the requested information before June 28 and have asked 
that the comment period be extended an additional 30 days to complete 
their data collection. The Commission is mindful of the need to deal 
with this matter expeditiously. However, the Commission is also aware 
that the issues raised are complex and welcomes as much substantive 
input as possible in order to facilitate its deliberations.
    Accordingly, the Commission has decided to extend the comment 
period to July 29, 1996, and to postpone the public forum until 
Thursday, October 3, 1996. This extension will provide sufficient time 
for commenters to complete their data collection and, thereafter, will 
provide all parties with an opportunity to review the record and to 
prepare fully for further examination of the issues raised by the April 
30 notice. Parties interested in participating in the forum must notify 
Commission staff by July 29, 1996. Prior to the forum, parties selected 
will be provided with copies of the comments received from the other 
participants in response to the April 30 notice.

List of Subjects

    Used cars, Warranties, Trade practices.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 96-16848 Filed 7-1-96; 8:45 am]
BILLING CODE 6750-01-M