Interpretation ID: aiam3490
Consumer Specialist
Dealer License Section
Wisconsin Department of Transportation
P.O. Box 7909
Madison
WS (sic) 53707;
Dear Mr. Peterson: Thank you for your letter of July 14, 1981, informing the agency that Wisconsin automobile dealership had issued an odometer disclosure statement which included a disclaimer of the company's responsibility for the accuracy of the statement. Specifically, you wanted to know if this practice was a violation of the Federal odometer laws.; Section 408(c) of the Motor Vehicle Information and Cost Savings Ac requires each automobile dealer who purchases a vehicle to obtain a complete odometer disclosure statement from the prior owner. 15 U.S.C. 1988(c). When the vehicle is resold, the dealer certifies the mileage by relying on the disclosure statement received from the prior owner. The Act, therefore, imposes an affirmative duty upon a dealer to obtain a complete odometer disclosure statement from the prior owner.; The Odometer Disclosure Requirements require the owner of a vehicle t disclose to subsequent purchasers the odometer mileage and to certify the accuracy of the odometer reading. 49 CFR 580.1. The regulations establish a specific scheme for the certification of the accuracy of the odometer reading. 49 CFR 580.4(c)(1) - (3). Where a transferor has knowledge that the odometer reading is inaccurate, the regulations require the transferor to certify that the mileage is not accurate and should not be relied upon. However, where the dealer has no reason to believe that the odometer reading is inaccurate, the dealer must certify the accuracy of the odometer reading to the subsequent purchaser. By including an absolute disclaimer on the odometer disclosure statement, the seller fails to certify the accuracy of the odometer reading as required by the Act.; Section 412 of the Act provides that any person who violates an provision of this title shall be subject to civil penalties not to exceed $1,000 for each such violation. 15 U.S.C. 1990(b). Thus, a dealer that includes a disclaimer on an odometer disclosure statement may be subject to civil penalties for failing to properly certify the accuracy of the odometer reading.; Enclosed please find a copy of the letter to the dealership informin it that the disclaimer on the odometer disclosure statement is a violation of the Federal odometer laws.; If you have any further questions, please do not hesitate to write. Sincerely, Frank Berndt, Chief Counsel