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THE CARLAWYER ©

Continued from page 34 FTC Offers Security Help. The FTC Although the purchase order stated “No
Federal Bill Would Ban Sales of Used released several blog posts as part of its Refund of Deposit,” a salesman allegedly
Cars With Open Recalls. U.S. Senators “Stick with Security” initiative to educate told Freeman that the deposit would be
Blumenthal (D-CT) and Markey (D-MA) businesses about the best practices to secure returned if A Better Way could not obtain
and U.S. Representative Schakowsky (D-IL) consumer data. The FTC will publish a blog financing for her. Using an online calculator
recently introduced legislation (H.R. 3449) post every Friday for the next few months and these figures, Freeman determined that
to ensure that used vehicles containing focusing on the 10 data security principles her monthly payments would be about
recalled, unsafe parts are repaired before addressed in its “Start with Security” guide $320, which she could afford.
being sold or leased. Dealers currently may for businesses. Based on information from
sell or lease cars with outstanding recalls. the FTC’s investigations and enforcement Freeman provided a $2,500 deposit, and
The Used Car Safety Recall Repair Act actions and questions from businesses, the A Better Way tried to secure financing.
would require used car dealers to repair any blog posts will use a series of hypotheticals Freeman did not approve of the financing
outstanding safety recalls before selling or to illustrate the steps companies can take to terms obtained by A Better Way, so she asked
leasing used automobiles. safeguard sensitive data in their possession. for her deposit back. The terms included
Manufacturers and new car dealers are Case of the Month ancillary products and services that
prohibited from selling vehicles containing Freeman did not want, and the payments
recalled parts, but no current law prohibits Sharay Freeman went to A Better Way were more than she could afford. A Better
used car dealers from selling or leasing Wholesale Autos to buy a used car. She Way refused to give her deposit back and
vehicles with open recalls. The sponsors say signed a retail purchase order, which set attempted to arrange new financing. Under
that the proposed legislation addresses the forth a cash purchase price of $10,995, a VIN the new terms, the sale price of the car was
gap in consumer protection that confuses etch service fee of $198, a dealer conveyance more than previously advertised, and the
car buyers who believe they are buying a fee of $598, sales tax of 6.35 percent, an number of payments increased.
product with safety assurances. The House unspecified amount for registration of the
bill is co-sponsored by Representatives vehicle, which she reasonably expected to Freeman declined the new financing as
Pallone, Jr. (D-NJ), Rush (D-IL), Butterfield be under $150, and a deposit of $2,500. well and sued A Better Way, claiming that
(D-NC), and Matsui (D-CA). it violated the Connecticut Unfair Trade

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36 | GIADA Independent Auto Dealer OCTOBER 2017