Interpretation ID: nht75-5.30

DATE: 04/28/75

FROM: AUTHOR UNAVAILABLE; Richard B. Dyson; NHTSA

TO: Jim Kielty

TITLE: FMVSR INTERPRETATION

TEXT: This is in response to your letter of February 25, 1975, requesting information concerning the odometer disclosure requirements contained in Title IV of the Motor Vehicle Information and Cost Savings Act (Pub. L. 92-513).

I have enclosed copies of the package that was sent to the State Attorneys General requesting their assistance in attacking the problem of odometer tampering and the report made by the agency pursuant to Section 413 of the Act.

You ask whether odometers are now tamper-proof and whether a Federal standard exists which requires their use. As far as we know, there is no item which could be called a "tamper-proof" odometer currently in use on motor vehicles. Some vehicle manufacturers have tamper-resistant odometers, but, I do not know if these are installed as standard equipment on vehicles. The National Highway Traffic Safety Administration (NHTSA) has not promulgated a standard requiring the inclusion of tamper-resistant odometers in motor vehicles. The concept has been examined, but the problems inherent in specifying objective criteria for tamper-resistance appeared great. It became apparent that development of a "tamper-proof" odometer specification was not possible, since we are uncertain if there is any way of making an odometer truly tamper-proof. We are open to suggestions as to how we might develop criteria that would ensure some level of tamper resistance.

Since the Federal odometer disclosure statement is mandatory throughout the United States, there is no pressure on States to make the Federal statement mandatory via State law. Some States have retained the odometer laws of disclosure that were in effect in their State prior to the enactment of the Cost Savings Act. In these States, the State law is not affected by the Federal requirements, as long as the Federal requirements are fulfilled. We do not know how many States have adopted disclosure requirements identical to the Federal ones. However, we support such a move, since it would then enable the State to enforce its provision and utilize any State remedies that might be available for noncompliance.

To date, the NHTSA has not prepared any model State odometer tampering legislation. We do, however, intend to develop a model State law sometime in the near future. Any State that requests assistance in preparing odometer tampering legislation for presentation to the State legislature would be provided with the model law.

Based on a survey conducted by the NHTSA concerning the level of compliance with the disclosure requirements of the odometer law, it became apparent that a large number of used car dealers are not complying with the disclosure provisions. We have been attempting to solve this problem by enlisting the aid not only of the National Automobile Dealers Association but the Dealers Safety Mobility Council and the American Association of Motor Vehicle Administrators. In addition, a public information campaign has been initiated by the NHTSA that hopefully will ameliorate the current odometer disclosure problem.

Private civil actions have been brought under the Cost Savings Act. Since they are private actions, it would be very difficult for us to monitor them. Thus, we must rely on individuals to report cases to us. For this reason, we do not know how many actions have been initiated, nor how they have been resolved.

We have received numerous reports alleging repeated violations of the Act by single dealers. However, since we have no investigative authority under the Act, we are unable to investigate the reports to obtain evidence necessary to bring an injunctive suit (the only Federal enforcement remedy under the Act). We were able to obtain sufficient evidence to bring such a suit in Florida. That case is currently in progress and had the advantage of two informats who were prior employees of the defendant and willing to testify against him.