Disclosure rule on flaws in used cars is waved off

December 11, 1981

Regulations designed to force used-car dealers to tell would-be buyers what's wrong with the car were hit Thursday by a Senate Commerce Committee vote. A final decision on the action - which if approved would mark the first time Congress has vetoed a Federal Trade Commission rule - is now up to the full Senate and House.

Some congressmen said they thought regulations would hurt consumers, result in endless litigation, and force up used-car prices. But others said the rules would offer information, the best kind of consumer protection.