Federal Legislation Introduced on Auto Issues

everal pieces of legislation addressing automotive issues have been intro- duced recently in both the U.S. House and Senate. One such bill introduced by Senators Ed Markey (D-MA) and Richard Blumenthal (D-CT) is entitled the “Used Car Safety Recall Repair Act” which would require used car dealers to repair any outstanding safety recalls in used automobiles prior to selling or leasing.

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While manufacturers and new car dealers are prohibited from selling vehi- cles containing recalled parts, there is no current law prohibiting used car dealers from selling or leasing vehicles containing dangerous parts.

According to statements by the Senators, there are now more than 46 million cars and trucks on our nation’s roads with unrepaired safety recalls and last year alone, five million used cars subject to safety recalls were sold to new owners without the necessary repairs.

Senators Markey and Blumenthal also introduced legislation requiring that safety recall remedies be completed before vehicle registration renewals are issued. ARA continues to meet with both offices in an effort to educate law- makers about the importance of part numbers as they relate to safety recalls. Other legislation includes a “Motor

Vehicle Safety Whistleblower Act” which passed favorably out of the Senate, pro- viding incentives and protections for auto industry whistleblowers who report knowledge relating to vehicle defects. A comprehensive House Democrat bill was re-introduced addressing federal government and consumer issues relat- ing to auto recalls. Bills in both the House and Senate have been re-intro- duced that shorten the time of a auto- motive design patent from 14 years to 30 months. In both the House and Senate legislation has been introduced that “encourages the use of remanufac- tured parts” in the Federal fleet of vehi- cles.

FTC Rules BMW Violated the Magnuson-Moss Warranty Act

he Federal Trade Commission (FTC) has ruled that BMW, through its MINI Division, violated a provision in the federal Magnuson-Moss Warranty Act that prohibits companies from requiring that consumers – in order to maintain their warranties – use specific brands of parts or specified service centers. BMW has agreed to settle the FTC charges and will change its practices and give MINI owners information about their warranty rights. The settlement also: • Bars BMW, in connection with the sale of any MINI Division good or serv- ice, from representing that, to ensure a vehicle’s safe operation or maintain its value, owners must have routine main- tenance performed only by MINI deal- ers or MINI centers; and

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• Requires BMW to provide affected MINI owners with information about their right to use third-party parts and service without voiding warranty cover- age.

May-June 2015 | Automotive Recycling 59