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SIX MICHIGAN AUTOMOBILE DEALERS CITED FOLLOWING FTC SURVEY

 LANSING, Mich., Nov. 16 ~PRNewswire~ -- Attorney General Frank J. Kelley and Secretary of State Richard H. Austin announced today that six Michigan used car dealers have been notified that lawsuits will be filed against them if they do not bring their dealerships into compliance with a Federal Trade Commission (FTC) rule requiring full disclosure of the condition and warranty status of used vehicles. The notices were sent after a recent inspection sweep revealed flagrant violations of the rule. Seventeen other dealers were sent letters, accompanied by a copy of the FTC's Used Car Rule, notifying them that inspectors found some violations of the federal rule. None of the 23 dealers visited were in total compliance. (Following is a list of the dealers receiving notices and letters.)
 The sweep, dubbed "Operation Full Disclosure," was conducted Oct. 14 in Detroit suburbs, Lansing, Flint, Grand Rapids and Kalamazoo by representatives from the attorney general's office, the Michigan Department of State's Bureau of Automotive Regulation, and the FTC who visited dealers selected at random. Inspectors checked for compliance with a federal rule that requires dealers to display a standard form called a "Buyers Guide" in the side window of each used vehicle that is being offered for sale. The Buyers Guide tells consumers:
 -- if the vehicle comes with a warranty and whether it is a full or limited warranty;
 -- what components of the vehicle are covered by a warranty and the time period or mileage for which the warranty is in effect;
 -- what percentage of costs the buyer must pay for parts and labor for repairs covered by a limited warranty;
 -- whether the vehicle is being sold "as is," meaning the buyer is responsible for all repair work, and the dealer provides neither express nor implied warranties regarding the condition of the vehicle.
 Those dealers receiving notices of intended action had numerous violations, with the Buyers Guides missing from a large percentage of vehicles. At one Lansing dealership, 96 percent of the vehicles had no Buyers Guide. Often, the Buyers Guides that were displayed were improperly or incompletely filled out. Dealerships receiving letters had a Buyers Guide affixed to most, or all, of their vehicles, but they were either improperly completed or improperly displayed. Some of the violations included failure to fill in both sides of the form, failure to supply the complete vehicle identification number on the form, or failure to adequately describe the systems that were covered by warranties.
 Austin said: "I am pleased the majority of dealerships visited by the inspection teams were in substantial compliance with the federal rule. I am sure the active dealer associations in Michigan and continued contact by the Bureau of Automotive Regulation are largely responsible for dealers' awareness of the rules and their compliance."
 Kelley said, "Indications are that Michigan used car dealers do better than dealers in other states where the FTC has conducted sweeps. Those dealers not in compliance, especially those who receive notices of intended action, should know that they must comply with both Michigan and federal law. People have a need and a right to know all pertinent facts about the car they are buying."
 Those receiving notices of intended action must contact the Attorney General's office within 10 days or face a possible lawsuit alleging violations of Michigan's Consumer Protection Act. A lawsuit alleging violations of Michigan's Consumer Protection Act could lead to injunctive action and~or civil fines of $25,000. Those receiving letters must, within two weeks, provide the Attorney General's office with written acknowledgment of their obligations under the FTC rule and their intent to comply with the requirements.
 RECEIVED NOTICES OF INTENDED ACTION:
 CLASSIE MOTORS INC. ODEH, INC.
 22318 Ford Road 26250 Plymouth
 Dearborn Heights, Mich. 48127 Redford, Mich. 48239
 MORRIS HOWARD'S USED CARS RAMONT AUTO SALES, INC.
 29899 Michigan Ave. 117 S. Cedar
 Inkster, Mich. 48141 Lansing, Mich. 48910
 MURRAY'S USED CARS ROBERTS MOTORS, INC.
 135 Telegraph 3420 S. Division
 Taylor, Mich. 48180 Grand Rapids, Mich. 49508
 RECEIVED LETTERS SPECIFYING VIOLATIONS:
 AGENCY AUTO SALES, INC. ROYAL OAK FORD, INC.
 12830 Telegraph Road 550 N. Woodward
 Taylor, Mich. 48180 Royal Oak, Mich. 48067
 AUTOMOTIVE WHOLESALERS, INC. T.A. SMITH ENTERPRISES, INC.
 23301 Harper d~b~a~ CELEBRITY CAR COMPANY
 St. Clair Shores, Mich. 48080 206 S. Dort Highway
 Flint, Mich. 48503
 BLAIN BUICK GMC TRUCK, INC. STADIUM MOTORS
 G-4315 Clio Road 2815 Stadium Drive
 Flint, Mich. 48504 Kalamazoo, Mich. 49008
 CENTURY BUICK-GMC TRUCKS, INC. SUNDANCE CHEVROLET
 3003 Stadium Drive d~b~a~ SUNDANCE SUZUKI
 Kalamazoo, Mich. 49009 2763 E. Grand River
 East Lansing, Mich. 48823
 HARVEY TOYOTA, INC. UNIVERSITY OLDSMOBILE, INC.
 4575 Plainfield Ave., N.E. 6420 S. Cedar St.
 Grand Rapids, Mich. 49505 Lansing, Mich. 48911
 K & L SALES, INC. VAN'S USED CARS, INC.
 17026 Dix-Toledo Highway 23509 Little Mack
 Wyandotte, Mich. 48192 St. Clair Shores, Mich. 48080
 KOOL CHEVROLET BUD & DOUG WALTERS AUTO SALES
 2815 Stadium Drive 1600 S. Drake Road
 Kalamazoo, Mich. 49008 Kalamazoo, Mich. 49007
 LIVONIA VOLKSWAGEN, INC. WINNERS DODGE, INC.
 34501 Plymouth Road 25151 Allen Road
 Livonia, Mich. 48150 Woodhaven, Mich. 48183
 MAPLE HILL CHRYSLER-PLYMOUTH
 5622 W. Main St.
 Kalamazoo, Mich. 49009
 -0- 11~16~92
 ~CONTACT: Chris De Witt of the Office of Attorney General, 517-373-8060 or (home) 517-627-1690~


CO: ST: Michigan IN: AUT SU:

ML -- DE031 -- 1392 11~16~92 15:05 EST
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Publication:PR Newswire
Date:Nov 16, 1992
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