Relating To The Sale And Financing Of Motor Vehicles
16 CFR Part 197 · Trade practice rules · in the Code of Federal Regulations 1959-1978 (13 annual editions)
Scanned CFR pages, OCR text may contain errors; the linked Library of Congress PDF is the authority. Not legal advice; not affiliated with the FTC. These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.
Latest edition: Library of Congress, 1978 CFR · Earliest edition: 1959 CFR
Text (1978 edition, OCR)
Chapter |—Federal Trade Commissien Grovrp II § 195.101 Products to be manufactured, re- paired, renovated, and sold under sani- tary conditions. The industry condemns the practice of manufacturing, repairing, renovat- ing, or selling bedding products under unsanitary conditions. COMMITTEE ON TRADE PRACTICES § 195.201 Industry committee. The provisions of §16.1: of this chapter shall be applicable to an in- dustry committee established under this part. (21 FR 1174, Feb. 21, 1956] PART 197—RELATING TO THE SALE AND FINANCING OF MOTOR VEHI- CLES Grovr I Sec. 197.1 Misrepresentation as to insurance coverage or rates, financing costs, etc. 197.2 Furnishing the purchaser with itcm- ization of his costs in the installment sale of motor vehicles. 197.3 Installment sales contract containing blank spaces to be filled in aftcr its ex- ecution. 197.4 False, misleading, or deceptive use of rate charts in connection with the in- stallment sale and financing of motor vehicles. 197.5 Requiring the placing of insurance by the seller or financing institution as a condition to the sale or financing of a motor vehicle. AvutTnorriry: Secs. 6, 5, 38 Stat. 721, 719; 15 U.S.C. 46, 45, unless otherwise noted. Source: 16 FR 1059, Feb. 6, 1951, unless otherwise noted. Group I § 197.1 Misrepresentation as to msurance coverage or rates, financing costs, etc. It is an unfair trade practice for any selier or financing institution, acting individuaily or in agreement, combina- tion, conspiracy, or coliusion with one another, to make any false, mislead- ing, or deceptive statements or repre- sentations concerning insurance cover- 116CFR 16.1 was deleted at 36 FR 3116, Feb. 18, 1971. § 197.2 age or rates, plans respecting methods of financing, or financing costs or rates, in connection with the sale at retail of motor vehicles on installment or deferred payment contracts. §197.2 Furnishing the purchaser with itemization of his costs In the install- ment sale of motor vehicles. (a) In the installment sale of motor vehicles it is an unfair trade practice for the seller to fail, before the con- summation of the sale, to furnish the buyer an itemization in writing signed by the seller separately disclosing to the purchaser the finance charge, in- surance costs, and other charges which are pald or to be paid by the purchaser, such failure to separately disclose such items having the capac- ity and tendency or effect of deceiving the purchaser as to the nature of his costs in the transaction or rendering competition with respect to the cost of good will, and every effort should be made by the disputants to compose their differences. (b) The seiler shall be deemed to have fully complled with the require- ments of this section when he has fur- nished the purchaser, before consum- mation of the saie, an itemization in writing which clearly discloses: (1) The delivered price of the motor vehicle, including accessories or extras, if any; and (2) The amounts to be credited as down payment and trade-in, if any; and (3) The time baiance owed by the buyer to seller, the amount of each in- stallment payment to be made by the buyer, and the number of such instail- ment payments, and the due dates thereof; and (4) The cost of insurance, the cover- age provided, and the party or parties to whom the insurance is payable; and (5) The finance charge; and (6) Other charges making up the total consideration paid or to be pald by the purchaser, included in the time balance, the amounts and nature of each to be separately stated; or when all sald required information is clearly set forth in the installment sales contract, chattel mortgage, or other instrument evidencing the pur- 79 § 197.3 chase transaction, and a true copy of such instrument is furnished to the purchaser before or at the time of the execution thereof. Provided, however, That paragraphs (bo) (1), (2), (3), (4), (5), and (6) of this section need not be. stated in the se- quence or order above set forth, and that additional items may be included which serve to explain the calculations invoived in determining the stated time balance to be paid by the pur- chaser: And provided further, That when all the said required information is clearly set forth in an installment sales contract, chattel mortgage, or other instrument evidencing the pur- chase transaction, and a true copy of such instrument is furnished to the purchaser before or at the time of his execution thereof, no additional item- ization need be furnished to the pur- chaser. (c) In connection with the install- ment saie of motor vehicles, it is an unfair trade practice for any financing institution to aid or abet a seller in ef- fecting concealment or nondisclosure to the purchaser of the information required to be furnished to the pur- chaser under the provisions of para- graph (a) of this section. $197.3 Installment sales contract contain- ing blank spaces to be filled in after its execution. In the execution of an installment saies contract, it is an unfair trade practice for the seller to utilize the device of having the purchaser sign a contract or receipt in blank, to be filled in subsequently by the selier or financing institution with the purpose or effect of deceiving the purchaser. NOTE: Nothing in this section shall be con- strued as prohibiting unfilled blanks for in- sertion of identifying serial numbers and identifying marks when knowiedge concern- ing such numbers or marks is not available to the dealer at the time of the execution of the contract: Provided, That there is a clear and sufficlent description of the motor vehi- cle which shall be fully adequate to identify it readily: And provided further, That such identifying numbers and identifying marks are subsequently inserted in the contract upon the delivery of the motor vehicle. 80 Title 16—Commercial Practices $197.4 False, misleading, or deceptive use of rate charts in connection with the installment sale and financing of motor vehicles. It is an unfair trade practice for any seller or financing institution, either individually or in agreement, combina- tion, conspiracy or collusion with each other, through the misuse of a rate or rate charts, or any other device or in any other manner, to make a false, misleading, or deceptive representa- tion to the purchaser of a motor vehi- cle as to the finance charge required by a financing institution to finance the amount of the unpaid baiance of the contract. §197.5 Requiring the placing of insurance by the seller or financing institution as a condition to the sale or financing of 8 motor vehicle. It is an unfair trade practice for any seller or financing institution, either individually or in agreement or collu- sion with each other, to condition the installment saie or financing of a motor vehicle on the purchase of an insurance policy from a particular in- surance company when equlvaient or better coverage by another insurance company is avallable and the purchas- er desires to purchase the policy of such other company, where the effect of such conditioning may be to sub- stantially lessen, stifle, or suppress competition. This section shall not prevent the exercise by the financing institution of the right to approve or disapprove for good cause the insur- ance company selected to underwrite the insurance. PART 205—UPHOLSTERY AND DRAPERY FABRICS INDUSTRY Grovr 1 Sec. 205.1 Misrepresentation (general). 205.2 Misbranding. 205.3 False invoicing. 205.4 Deception as to origin. 205.5 Identification and disclosure of fiber or material content. 205.6 Disclosure of presence of used fiber or material. 205.7 Substitution of products. 205.8 Inducing breach of contract. 205.9 Commercial bribery.