Guides for the Rebuilt, Reconditioned and Other Used Automobile Parts Industry
Federal Information & News Dispatch, Inc. |
Final Revisions to Guides.
CFR Part: "16 CFR Part 20"
Citation: "79 FR 40623"
"Rules and Regulations"
SUMMARY: The Commission has completed its review of the Guides for the Rebuilt,
EFFECTIVE DATE: This action is effective as of
ADDRESSES: The document is available on the Internet at the Commission's Web site, www.ftc.gov.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: The market for previously used automobile parts encompasses a broad range of parts and assemblies of parts previously used on vehicles (collectively, industry products or products). Industry products range from mechanical or body parts removed from a salvaged vehicle and put on a working vehicle without modification of any kind to parts that, after removal from the original vehicle, undergo substantial disassembly, rebuilding, inspection, and, in some instances, upgrading from their original condition, before being returned to service. The availability of these parts means vehicles stay in service longer and for a lower price than if consumers had to rely only on new parts from the manufacturer. One commenter asserted that without rebuilt or remanufactured parts, 25% of the vehicles currently on the road, and a higher percentage of off-road vehicles (e.g., construction and farm equipment) would be out of service. /1/ Savings to consumers from using rebuilt or remanufactured parts range from 20-50%. /2/
FOOTNOTE 1
FOOTNOTE 2 Id., p. 1;
The Guides for the Rebuilt,
FOOTNOTE 3 The final revised guides contain a new paragraph (b) in section 20.0 describing the purpose and status of the guides, which is consistent with the Commission's long standing treatment of its industry guides. See 16 CFR 1.5. END FOOTNOTE
1. Misrepresenting industry products as new or misrepresenting the amount of use of an industry product;
2. Misrepresenting the identity of anyone who worked on an industry product after it was removed from the original vehicle;
3. Misrepresenting the condition of an industry product or the amount of work done to it after its removal from the original vehicle.
II. Regulatory Review of the Guides
As part of its continuing program to review its rules and guides, the Commission published a notice in the
FOOTNOTE 4 77 FR 29922 (
FOOTNOTE 5 The commenters consisted of (a) six trade associations:
The Commission has decided to accept and consider the delayed submission of the AIA. This entity contacted the agency on
The Commission declines to accept a secondary submission from MEMA after the close of the comment period on
FOOTNOTE 6 AIA, p. 1 ("[T]he current Guides provide a level of consistency for the repair and insurance industries . . . We do not believe there are any changes needed at this time.");
FOOTNOTE 7 AAA, p. 1 ("AAA believes that the current FTC guidelines are extremely important to ensure that vehicle equipment information is accurately identified and labeled to avoid any confusion by consumers and automotive service and repair technicians. Overall, AAA endorses the Commission's Used Auto Parts Guides and believes they should be retained.");
FOOTNOTE 8 ARA, p. 1 ("ARA's continued support of the publication of the Guides is only possible if amended."); MEMA, p. 1 ("[T]he Guides are outdated and outmoded because they suggest that remanufactured automotive products and various used automotive products are largely equivalent . . . ."), p. 5 ("We urge the FTC not to finalize the Guides in the current format, . . . . [T]he Commission should overhaul the Guides to reflect this ongoing evolution of the remanufacturing industry."). END FOOTNOTE
FOOTNOTE 9 Bryner ("THANK YOU for addressing this issue . . . . The main concern I have with used parts is safety.") (emphasis in original);
The Commission has determined to retain and revise the Guides. The comments show a continuing need for the Guides for the benefits they provide, including both protections for consumers and clarity for industry members. /10/ Further, the Guides do not appear to impose substantial costs; none of the commenters stated that compliance with the Guides is burdensome. On balance, it appears that the benefits of the Guides outweigh their costs. Therefore, the record supports retaining them. In addition, as set forth below, the record supports certain changes to the Guides. The Commission has considered numerous other changes proposed by commenters and concluded not to adopt them.
FOOTNOTE 10 See generally supra, note 6. END FOOTNOTE
The remainder of this Section II summarizes the record and explains the Commission's decisions as to specific items.
A. Terms Used To Describe Industry Products
Several commenters suggested that the Commission modify the Guides to define additional terms used to describe industry products. These commenters believed such definitions would further inform consumers as to the amount of work done on an industry product after its removal from the original vehicle. /11/ Industry products come in a broad range of conditions. The current Guides define the terms "rebuilt," "remanufactured," and "factory rebuilt," /12/ but they also mention, "used," "secondhand," "repaired," "reconditioned," and "relined" as examples of "appropriate descriptive terms" for industry products while leaving these terms undefined. /13/ Commenters suggested a rough hierarchy of industry products, with "rebuilt" and "remanufactured" describing products receiving the most reworking and "used" or "salvaged" the least. /14/
FOOTNOTE 11 See APRA, p. 2 (the Guides need to distinguish between a part on which no work has been done and a part on which some work has been done but not enough to qualify as "rebuilt" or "remanufactured"); Bryner, p. 1 (parts from a salvage yard should be labeled as such; "recycled" implies some work on a previously used part); MEMA, pp 3-4 (specify that "remanufactured" parts are neither new nor used); but see, AAA, p. 1 (the current guides are important to ensure accurate identification and labeling of parts); AIA, p. 1 (the current terms are appropriate and not in need of changing). END FOOTNOTE
FOOTNOTE 12 16 CFR 20.3. END FOOTNOTE
FOOTNOTE 13 16 CFR 20.1(b). END FOOTNOTE
FOOTNOTE 14
The Commission recognizes that it is possible consumers might benefit from additional specificity in the meaning of terms used to refer to industry products, but based on the record, with one exception, it has determined not to change the way industry products are described. With the exception of MEMA, the commenters on this topic failed to identify what terms the Guides should define or to propose definitions for those terms. Moreover, overall, the commenters supported the Guides and believed they have been effective. In light of this support and the lack of comments suggesting specific definitions, the Commission believes the record supports only the one change described below, concerning the term "remanufactured."
MEMA argued specifically that the Guides should be amended so as to differentiate "remanufactured" from "rebuilt"; the Guides now treat these terms as equivalent. MEMA asserted, without providing supporting data or other evidence, that including remanufactured products in the same category as products sold with little or no reworking confuses consumers. MEMA also argued that its definition of remanufactured comports with how international trade agreements use the word. /15/
FOOTNOTE 15 MEMA, pp. 2-3. END FOOTNOTE
MEMA proposed applying the term "remanufactured" only to industry products "produced using a standardized industrial process by which previously sold, worn or non-functional products are returned to same-as-new, or better, condition and performance." /16/ The standardized process, according to MEMA, is done in a factory and requires "technical specifications, including engineering, quality, and testing standards to yield fully warranted products." /17/ The process incorporates upgrades and corrects defects identified since the product first went on a vehicle. /18/ MEMA urged the Commission "not to finalize the Guides in the current format, which does not properly recognize the significant advancements made by the U.S. remanufacturing industry over the past 30 years." /19/
FOOTNOTE 16 Id., (emphasis in original). END FOOTNOTE
FOOTNOTE 17 Id., p. 3 (emphasis in original). END FOOTNOTE
FOOTNOTE 18 MEMA distinguishes "remanufactured" from "rebuilt" parts. According to MEMA, an individual can rebuild a part without following the same procedure every time, and any specific rebuilt part may contain a high percentage of the components it originally contained. As we understand it, MEMA's definition of remanufacturing involves complete disassembly of an industry product into components. An assembly line starts with one component, and as the line advances additional components are added, some new, some, perhaps, used. At the end of the line the remanufactured part is complete. Each remanufactured part, however, may contain few, if any components that were together originally, and assembly of each remanufactured part follows the same procedure. The remanufacturing process incorporates any upgrades, and corrects any defects identified, since the part was made originally, changes that, according to MEMA, may not occur in a part that is "factory rebuilt," as that term is defined in the Guides. See 16 CFR 20.3. END FOOTNOTE
FOOTNOTE 19 MEMA, p. 5. END FOOTNOTE
The Commission declines to adopt MEMA's proposed definition of "remanufactured," but, as discussed below, is revising the Guides to provide that the term "remanufactured," like the term "factory rebuilt," should be used only if the product was rebuilt "in a factory generally engaged in the rebuilding" of industry products. The Commission declines to adopt MEMA's proposed definition of "remanufactured" because the Commission does not have a basis to believe that MEMA's specific proposal will necessarily improve consumers' understanding of the difference between remanufactured products and other industry products. /20/ In addition, the record does not identify any costs or confusion resulting from definitions in the Guides not matching those in international trade agreements.
FOOTNOTE 20 Moreover, assuming, without deciding, that industry products meeting MEMA's definition of "remanufactured" are superior to "rebuilt," "factory rebuilt," or other industry products, adopting MEMA's proposed definition is not necessary to communicate this difference. Indeed, MEMA noted that it is developing "a certification program that will let consumers and commercial customers know that remanufactured parts from
MEMA's comments, however, provided evidence that "remanufacture" involves a process performed in a factory setting in a way that "rebuilt" does not. /21/ The Commission has, therefore, decided to change
FOOTNOTE 21 MEMA, pp. 2-3. This distinction is also supported by reference to prevailing understandings of the terms. For example, Webster's Third New International Dictionary defines "manufacture" both as a noun ("the process or operation of making wares or other material products by hand or by machinery esp. when carried on systematically with division of labor") and as a verb ("to produce according to an organized plan and with division of labor"). Webster's Third New International Dictionary 1378 (2002). "Rebuilt," by contrast involves extensive repairs, reconstruction, restoration to a previous state, or remodeling, but does not indicate a systematic process. See id. at 1893. END FOOTNOTE
B. Disclosures
The
1. Clear and Conspicuous
The Guides provide that "clear and conspicuous" disclosure that the product is used or contains used parts should be made when industry products are advertised or sold. These disclosures should appear in advertisements and promotional literature, on invoices, on packaging, and on the product itself. The current Guides suggest some descriptive terms to describe a product's condition--"used," "secondhand," "repaired," "remanufactured," "reconditioned," "rebuilt," and "relined" /22/ --and allow codes to describe the products on invoices between different sellers. /23/ Beyond these statements, however, the Guides do not prescribe specific methods for providing "clear and conspicuous" disclosures.
FOOTNOTE 22 "Recycled" may also be used if its usage complies with the Guides for the Use of Environmental Marketing Claims, 16 CFR 260.7(e). END FOOTNOTE
FOOTNOTE 23 16 CFR 20.1(b) (2013). END FOOTNOTE
One commenter responded on this point. The
FOOTNOTE 24 16 CFR 20.1(b)(1) (2000). END FOOTNOTE
of such size or color contrast and so placed as to be readily noticeable to purchasers or prospective purchasers reading advertising, sales promotional literature, or invoices containing same, or reading any representation as to content on the container in which an industry product is packed, or inspecting an industry product before installation, or with a minimum of disassembly after installation. /25/
FOOTNOTE 25 16 CFR 20.1(b)(2) (2000). END FOOTNOTE
The
FOOTNOTE 26
The Commission has decided not to change the current language regarding clear and conspicuous. The current Guides afford businesses flexibility in complying with the Guide's disclosure provisions and avoid a definition that is too narrow to apply to the myriad situations in which a disclosure may be needed. Moreover, the record does not indicate that sellers of industry products are having difficulty understanding or applying the current language. /27/ Therefore, the Commission has decided not to change this section of the Guides.
FOOTNOTE 27 In certain circumstances, the Guides do provide more information about the placement and conspicuousness of disclosures. See 16 CFR 20.2(b). END FOOTNOTE
2. Timing of Disclosures
Three commenters addressed the timing of disclosures to consumers, responding to the
FOOTNOTE 28 The Guides would apply if the installer also manufactures, sells, distributes, markets, or advertises the industry product. END FOOTNOTE
The AAA suggested that verbal disclosure of an industry product be required when an installer seeks verbal authorization to proceed with a repair. The AAA also suggested that signs in the installer's facility should state that industry products may be used and that use of an industry product be disclosed on the consumer's invoice. The AAA further recommended that engines, transmissions, and other assemblies represented to have "low mileage" be accompanied by documentation of their conditions, such as pictures and
FOOTNOTE 29 AAA, p. 2.
The APRA asserted that the Guides complement laws in some states that require mechanics to disclose the use of industry products and that without the Guides such disclosures would be "more difficult and less effective." /30/ The
FOOTNOTE 30
FOOTNOTE 31 Id., pp. 9-10. END FOOTNOTE
Mr. Stilnovic suggested that car dealers provide consumers interested in used cars with a pamphlet alerting the consumers to the Guides and disclosing any industry products in the vehicle the consumer is considering.
None of these commenters provided data or other evidence to support their positions or indicate the extent of the problems they address, and the Commission has determined not to modify the Guides without such information. The AAA's suggestions on disclosure have intuitive appeal. The existing record, however, does not contain specific evidence of a problem with the timing of disclosures, nor does the Commission possess other evidence of such a problem. The Commission will monitor developments in this area and revise the Guides if evidence of problems with the timing of disclosures about industry products arises.
Mr. Stilnovic's suggestion of a pamphlet disclosure given in connection with used cars would impose burdens on dealers, with uncertain benefits for consumers. The disclosure would inform consumers of the Guides, but such generic information may well be of little value at the time, when the consumer's focus is on the purchase of the vehicle, not on a specific part. In addition, requiring a dealer to disclose any industry products in a vehicle could require the dealer to disclose information it does not have, such as in situations when the dealer buys the vehicle at auction. For these reasons, the Commission has chosen not to adopt this suggestion.
C. Coverage of the Guides
The
FOOTNOTE 32 77 FR 29922, 29923-29924 (
1. Tires
The current Used Auto Parts Guides expressly state that they do not apply to tires because tires are covered by a separate guide. /33/ When the Used Auto Parts Guides were last reviewed, tires were covered by the
FOOTNOTE 33 16 CFR 20.0. END FOOTNOTE
FOOTNOTE 34 69 FR 56932 (
FOOTNOTE 35 69 FR at 56933. END FOOTNOTE
The Commission believes the Used Auto Parts Guides should now apply to tires. The risk of overlap or contradiction between the Guides and the tire guides no longer exists, and continuing to exclude tires from the Used Auto Parts Guides could be interpreted to mean that sellers need not disclose when tires are used or retreaded. The Commission notes that two of the three commenters on this topic support having the Guides apply to tires. /36/ Therefore,
FOOTNOTE 36 ARA, p. 7 (include tires in the Guides, but require "a visual appearance inspection and tread depth evaluation to determine whether a tire should be resold"); Stilnovic (include tires in the Guides so consumers know what they are getting). The Commission declines to adopt ARA's inspection and evaluation requirements because the purpose of the Guides is to provide notice to consumers, not to establish quality standards.
The third commenter on this topic urged continued exclusion of tires because the terms used in the Guides to describe industry products have not been applied to used tires or "mean something different when applied to tires," creating the potential for confusion.
2. Vehicles Whose Parts Are Covered by the Guides
The current Used Auto Parts Guides apply to parts "designed for use in automobiles, trucks, motorcycles, tractors, or similar self-propelled vehicles." /37/ The Commission requested comments on whether this list adequately described the vehicles to which the Guides should apply. The
FOOTNOTE 37 16 CFR 20.0. END FOOTNOTE
The Commission has decided not to change the language in the Guides that describes the vehicles covered. From the single comment, the Commission cannot determine that a need for change exists or that any change would not have adverse effects that a more thorough record would reveal. Although it declines to amend the Guides in this regard, the Commission notes it has the authority to pursue sellers who deceive buyers of any product about that product's previous use or reworking. Section 5's broad prohibition against unfair and deceptive acts or practices continues to apply in these situations, regardless of whether the products are covered by the Guides.
D. Education
The
FOOTNOTE 38 AAA, p. 2. END FOOTNOTE
FOOTNOTE 39
The ARA urged the FTC to educate consumers about the potential biases of manufacturers promoting original parts. /40/ MEMA requested that the Commission educate the public on the quality and benefits of remanufactured products and to support MEMA's "Manufactured Again" certification program. /41/ Mr. Stilnovic urged education regarding the potential presence of industry products in used cars. He also suggested that the Commission provide data showing how long industry products lasted versus new products, so consumers could make more informed decisions.
FOOTNOTE 40 ARA, p. 2. END FOOTNOTE
FOOTNOTE 41 MEMA, pp. 2, 4. END FOOTNOTE
No change to the Guides is needed for the Commission to augment its educational efforts on this issue, and accordingly, no change has been made on this topic. The Commission will continue to look for opportunities to educate consumers about the benefits and drawbacks of industry products and to educate businesses about their obligations when selling such products.
E. Other Comments
Commenters mentioned other topics, not discussed above.
1.
The AAA suggests that ten additional items be added to the forty-seven examples in the current Guides of parts that might be sold as industry products. /42/ The Commission believes the examples should be up-to-date, but stresses that the Guides provide examples of industry products, and not an exhaustive list. Accordingly, the revised Guides include some of the parts suggested by the AAA, but other parts were removed to yield a shorter list of examples overall. No substantive change is intended by removing an item from the list. The revised list includes tires. /43/
FOOTNOTE 42 AAA, p. 1; See 16 CFR 20.0. END FOOTNOTE
FOOTNOTE 43 The current Guides list the following items as examples of parts that can be industry products: "anti-lock brake systems, air conditioners, alternators, armatures, air brakes, brake cylinders, ball bearings, brake shoes, heavy duty vacuum brakes, calipers, carburetors, cruise controls, cylinder heads, clutches, crankshafts, constant velocity joints, differentials, drive shafts, distributors, electronic control modules, engines, fan clutches, fuel injectors, fuel pumps, front wheel drive axles, generators, master cylinders, oil pumps, power brake units, power steering gears, power steering pumps, power window motors, rack and pinion steering units, rotors, starter drives, speedometers, solenoids, smog pumps, starters, stators, throttle body injectors, torque convertors [sic], transmissions, turbo chargers, voltage regulators, windshield wiper motors, and water pumps." 16 CFR 20.0.
The revised Guides list the following items as examples of parts that can be industry products: "airbags, alternators and generators, anti-lock brake systems, brake cylinders, carburetors, catalytic converters, differentials, engines, fuel injectors, hybrid drive systems and hybrid batteries, navigation and audio systems, power steering pumps, power window motors, rack and pinion units, starters, steering gears, superchargers and turbochargers, tires, transmissions and transaxles, and water pumps." See infra, text of revised
2.
The APRA's comments included two suggestions not covered above.
a. The
FOOTNOTE 44 15 U.S.C. 45. END FOOTNOTE
The Commission has determined that it is not necessary to amend the Guides as the
FOOTNOTE 45 67 FR 9919, 9921 (
b. The
The Commission declines to adopt this suggestion. The current Guides and law allow original markings to be left on a part if (1) the part is properly disclosed as an industry product and (2) the reworker is identified (if the reworker is different from the original manufacturer). /46/ There is no need for the Guides to require a reworker to retain trademarks of the original manufacturer. If a reworker believes leaving these marks on the part provides a marketplace benefit, it can do so, and consumers and installers can choose whether to purchase from those reworkers. A reworker who believes it benefits from removing original markings (in favor, for example, of promoting its own brand as a rebuilder), can adopt that practice, and consumers and installers can choose based on their own preferences.
FOOTNOTE 46 16 CFR 20.2;
3.
The ARA suggested three other amendments to the Guides, stating that its support for the Guides was contingent on its proposed changes.
a. The ARA requested that the Commission prosecute car manufacturers and dealers who run ads promoting new repair parts. The ARA argues that such ads unfairly or deceptively imply that industry products, including recycled original-equipment body parts, are not as good as new parts. The ARA believes such ads "cause consumers to doubt the viability of recycled parts and cause consumers needlessly to annually spend billions of dollars. FTC should use these guides to help ensure that such anticompetitive practices cease." /47/ The ads the ARA provided, however, are in trade publications and promote the benefits of new manufacturer parts. Such general statements to a sophisticated audience have little likelihood of being broadly problematic. While the Commission would evaluate claims of deception on a case-by-case basis, it concludes that no changes to the Guides are necessary to address ARA's concerns. The Commission could take action against deceptive advertising, by car manufacturers or others, without changing the Guides.
FOOTNOTE 47 ARA, p. 2. END FOOTNOTE
b. The ARA believes the Guides should require car manufacturers to provide information on parts recycling in materials given to the consumer when the car is purchased as new. According to the ARA,
FOOTNOTE 48 Id., p. 2. END FOOTNOTE
FOOTNOTE 49 Id., p. 6. END FOOTNOTE
The Commission has decided not to make these changes. Historically, the Guides have neither promoted nor discouraged the use of industry products but have instead sought to ensure that consumers have accurate information from which to make a choice. The Commission sees no reason to deviate from this position.
c. The ARA requests that the Commission require online parts sellers to be licensed in the states in which they sell. /50/ The Commission declines to make this change. The purpose of the Guides is to assist industry members in avoiding unfair or deceptive acts or practices in the advertising and sale of industry products, such as misrepresentations regarding the condition of products. The Commission declines to recommend licensing requirements for online sellers and has no authority to enforce state licensing laws.
FOOTNOTE 50 Id., p. 5. END FOOTNOTE
4.
Bryner Chevrolet took no explicit position on the Guides. Rather, it argued that safety-related industry products from a salvage yard--suspension, steering, and brake parts--are inherently dangerous and should not be used, even though insurance companies prepare estimates that include these unsafe parts. Bryner's comment fails to explain what changes to the Guides, if any, are needed to address its concerns.
The Commission has decided that Bryner's comment warrants no changes to the Guides. The comment contains no data or other evidence with which the Commission can weigh the threat to consumer safety against the benefits of access to less expensive parts. Even if the data existed, the safety of vehicles and their parts fits better within the jurisdiction of the
FOOTNOTE 51 See 49 CFR 1.94(b).(stating that the
III. Section by Section Discussion of the Changes
In response to the comments received and the Commission's own analysis, several changes have been made to the current Guides. This part discusses the changes to each section of the Guides.
A. Title
The title has not been changed, other than to add a comma after "reconditioned," for stylistic purposes. No substantive change is intended.
This section has undergone a number of changes, including the creation of two paragraphs. Paragraph (a) contains the existing
FOOTNOTE 52 See supra, note 13 and related text. END FOOTNOTE
FOOTNOTE 53 The change does not create any new category of industry product. MEMA's comment described remanufactured products as "Not New, Not Used." MEMA, p. 2, but the use of "not new" in the revised Guides is broader than MEMA's meaning of remanufactured. END FOOTNOTE
Section 20.0(a) of the revised Guides differs from
FOOTNOTE 54 See supra, Section II.C.1. END FOOTNOTE
Paragraph (b) of revised
Some of the language has been amended to improve readability. In addition, the order of the list of appropriate descriptive terms has been changed to approximate the amount of reworking that some industry members believe the terms indicate. /55/ No substantive change is intended by any of these modifications.
FOOTNOTE 55 See supra, note 13 and related text. END FOOTNOTE
Section 20.2, including the title, has been changed to add "other reworker" to those to whom this section applies. The persons and processes mentioned in this section relate to some ways of changing a part after its removal from a vehicle--"rebuild," "remanufacture," "recondition," and "reline"--but other terms could also apply, including "overhaul," "retread," "repair," and "refurbish." Adding "other reworker" clarifies that, regardless of what is done to the part, the identity of the person doing it cannot be misrepresented, and may have to be disclosed. This section also contains stylistic changes designed to improve readability without changing the section's substance.
The parenthetical at the end of
FOOTNOTE 56 See supra, text following note 18. END FOOTNOTE
List of Subjects in 16 CFR Part 20
Advertising, Consumer protection, Motor vehicles, Trade practices.
For the reasons stated above, the
PART 20--GUIDES FOR THE REBUILT,
Sec.
20.0 Scope and purpose of the guides.
20.1 Deception generally.
20.2 Deception as to identity of a rebuilder, remanufacturer, reconditioner, reliner, or other reworker.
20.3 Misrepresentation of the terms "rebuilt," "factory rebuilt," "remanufactured," etc.
Authority: 15 U.S.C. 41-58.
(a) The Guides in this part apply to the manufacture, sale, distribution, marketing and advertising (including advertising in electronic format, such as on the Internet) of parts that are not new, and assemblies containing such parts, that were designed for use in automobiles, trucks, motorcycles, tractors, or similar self-propelled vehicles, regardless of whether such parts or assemblies have been cleaned, repaired, reconstructed, or reworked in any other way (industry product or product). Industry products include, but are not limited to, airbags, alternators and generators, anti-lock brake systems, brake cylinders, carburetors, catalytic converters, differentials, engines, fuel injectors, hybrid drive systems and hybrid batteries, navigation and audio systems, power steering pumps, power window motors, rack and pinion units, starters, steering gears, superchargers and turbochargers, tires, transmissions and transaxles, and water pumps.
(b) These guides set forth the
(a) It is unfair or deceptive to represent, directly or by implication, that any industry product is new or unused when such is not the fact, or to misrepresent the current condition, or extent of previous use, reconstruction, or repair of any industry product.
(b) It is unfair or deceptive to offer for sale or sell any industry product without disclosing, clearly and conspicuously, in advertising, in promotional literature, on invoices, and on the product's packaging that the item is an industry product. Additionally, it is unfair or deceptive to offer for sale or to sell any industry product that appears new or unused without disclosing on the product itself that it is an industry product, using appropriate descriptive terms with sufficient permanency to remain visible for a reasonable time after installation. Examples of appropriate descriptive terms include, but are not limited to "Used," "Secondhand," "Repaired," "Relined," "
(c) It is unfair or deceptive to place any means or instrumentality in the hands of others so that they may mislead consumers as to the previous use of industry products.
(a) It is unfair or deceptive to misrepresent the identity of the rebuilder, remanufacturer, reconditioner, reliner or other reworker of an industry product.
(b) If the identity of the original manufacturer of an industry product, or the identity of the manufacturer for which the product was originally made, is revealed and the product was rebuilt, remanufactured, reconditioned, relined, or otherwise reworked by someone else, it is unfair or deceptive to fail to disclose such fact wherever the original manufacturer is identified in advertising or promotional literature concerning the industry product, on the container in which the product is packed, and on the product itself, in close conjunction with, and of the same permanency and conspicuousness as, the disclosure that the product is not new. Examples of such disclosures include:
(1) Disclosure of the identity of the rebuilder: "Rebuilt by
(2) Disclosure that the industry product was rebuilt by an independent rebuilder: "Rebuilt by an Independent Rebuilder."
(3) Disclosure that the industry product was rebuilt by someone other than the manufacturer identified: "Rebuilt by other than
(4) Disclosure that the industry product was rebuilt for the identified manufacturer: "Rebuilt for
(a) It is unfair or deceptive to use the word "Rebuilt," or any word of similar import, to describe an industry product which, since it was last subjected to any use, has not been dismantled and reconstructed as necessary, all of its internal and external parts cleaned and made rust and corrosion free, all impaired, defective or substantially worn parts restored to a sound condition or replaced with new, rebuilt (in accord with the provisions of this paragraph) or unimpaired used parts, all missing parts replaced with new, rebuilt or unimpaired used parts, and such rewinding or machining and other operations performed as are necessary to put the industry product in sound working condition.
(b) It is unfair or deceptive to represent an industry product as "Remanufactured" or "Factory Rebuilt" unless the product was rebuilt as described in paragraph (a) of this section at a factory generally engaged in the rebuilding of such products.
By direction of the Commission.
Secretary.
[FR Doc. 2014-16339 Filed 7-11-14;
BILLING CODE 6750-01-P
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