Should a Customer Sign the Buyer's Guide?
The recent Federal Trade Commission action against several dealers across the country for failing to follow Used Car Buyer's Guide rule was an industry wake up call. For compliant dealers, one of the questions faced is whether to have its customer sign the Buyer's Guide. If dealers do choose to require this, they must make sure to follow additional FTC requirements.
FTC guidance states that a dealer may include a signature line on the Guide and ask the buyer to sign to acknowledge that it was received. If the dealer chooses to include a signature line, it must include a disclosure near it that says:
"I hereby acknowledge receipt of the Buyers Guide at the closing of this sale."
This language can be preprinted on the form. The signature line and the required disclosure must appear in the space provided for the name of the individual to be contacted in the event of complaints after the sale.
Some dealers that choose not to obtain the signature view it an extra step and believe their process offers enough protection. However, having it signed is strong proof that the customer received the information. Whichever path a dealer chooses, they must remember the importance of complying with the FTC regulations regarding buyers guides.
LINK: FTC Cracks Down on Old Buyers Guides