Opinion ID: 3052386
Heading Depth: 2
Heading Rank: 1

Heading: The Odometer Act

Text: The statutory scheme begins with a list of Congress’s findings and purposes. 49 U.S.C. § 32701. Congress finds that— (1) buyers of motor vehicles rely heavily on the odometer reading as an index of the condition and value of a vehicle; (2) buyers are entitled to rely on the odometer reading as an accurate indication of the mileage of the vehicle; (3) an accurate indication of the mileage assists a buyer in deciding on the safety and reliability of the vehicle; and (4) motor vehicles move in, or affect, interstate and foreign commerce. Id. § 32701(a). The Odometer Act’s purposes are “(1) to prohibit tampering with motor vehicle odometers; and (2) to provide safeguards to protect purchasers in the sale of motor vehicles with altered or reset odometers.” Id. § 32701(b). 9200 BODINE v. GRACO, INC. [1] Congress effectuated these purposes by outlawing actions that would cause discrepancies between a vehicle’s actual mileage and its odometer reading. The Act prohibits odometer3 tampering with intent “to change the mileage registered by the odometer.” Id. § 32703(2). It also forbids advertising for sale, selling, using, installing, or having installed “a device that makes an odometer of a motor vehicle register a mileage different from the mileage the vehicle was driven, as registered by the odometer within the designed tolerance of the manufacturer of the odometer.” Id. § 32703(1). It is also unlawful to, “with intent to defraud, operate a motor vehicle on a street, road, or highway if the person knows that the odometer of the vehicle is disconnected or not operating.” Id. § 32703(3). Regulating odometer tampering is Congress’s first method of achieving the Act’s goals; the second method seeks to empower consumers by providing them with accurate information at the time of a vehicle transfer.4 By regulation of the 3 “Odometer” is defined as “an instrument for measuring and recording the distance a motor vehicle is driven, but does not include an auxiliary instrument designed to be reset by the operator of the vehicle to record mileage of a trip.” 49 U.S.C. § 32702(5). 4 Section 32705(a) provides, in part: (1) Disclosure requirements.—Under regulations prescribed by the Secretary of Transportation that include the way in which information is disclosed and retained under this section, a person transferring ownership of a motor vehicle shall give the transferee the following written disclosure: (A) Disclosure of the cumulative mileage registered on the odometer. (B) Disclosure that the actual mileage is unknown, if the transferor knows that the odometer reading is different from the number of miles the vehicle has actu- ally traveled. (2) A person transferring ownership of a motor vehicle may not violate a regulation prescribed under this section or give a false statement to the transferee in making the disclosure required by such a regulation. (3) A person acquiring a motor vehicle for resale may not accept a written disclosure under this section unless it is complete. BODINE v. GRACO, INC. 9201 National Highway Traffic Safety Administration,5 “[i]n connection with the transfer of ownership of a motor vehicle, each transferor shall disclose the mileage to the transferee in writing on the title . . . .” 49 C.F.R. § 580.5(c) (emphasis added). “Title” is statutorily defined as “the certificate of title or other document issued by the State indicating ownership.” 49 U.S.C. § 32702(7); see also 49 C.F.R. § 580.3. According to Bodine, Graco “did not make the mileage disclosure on the title as required by 49 C.F.R. § 580.5.” The Odometer Act provides different methods of enforcement. The Secretary of Transportation (“Secretary”) can impose a civil penalty of up to $2,000 per violation of the Act or its regulations, and the Attorney General is tasked with enforcing such penalties in a civil action. 49 U.S.C. § 32709(a). The Attorney General or the chief law enforcement officer of a state can bring suit to enjoin violations of the Act and its regulations. Id. § 32709(c), (d)(1)(A). The Act provides a criminal penalty applicable to “[a] person that knowingly and willfully violates this chapter or a regulation prescribed . . . under this chapter.” Id. § 32709(b). [2] In addition to these public means of enforcement, the Act creates a private cause of action. The private cause of action has an independent liability provision: “A person that violates this chapter or a regulation prescribed or order issued under this chapter, with intent to defraud, is liable for 3 times the actual damages or $1,500, whichever is greater.” 49 U.S.C. § 32710(a) (emphasis added).6 A private person that 5 The Secretary of Transportation is delegated authority to “prescribe[ ] . . . the way in which information is disclosed and retained” under the Odometer Act, 49 U.S.C. § 32705(a)(1), and the Secretary further delegates that authority to the National Highway Traffic Safety Administrator, 49 C.F.R. § 1.50(f). 6 The chief law enforcement officer of a state is also empowered to bring an action to recover for a violation of § 32710. 49 U.S.C. § 32709(d)(1)(B). 9202 BODINE v. GRACO, INC. prevails in a civil action is entitled to attorney’s fees and costs. Id. § 32710(b). This last penalty is at issue here. Specifically, we must decide what Congress meant by “with intent to defraud” in § 32710(a).