Auto Warranty Fraud: The Window Sticker

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We often see car dealerships represent that a car is of a certain quality, including that it may be covered by a “warranty” or the “remainder of the factory warranty.” The FTC Used Car Buyer’s Guide Regulations require that there be a window sticker affixed to the window of every used car shown for sale at a dealership and that the window sticker accurately list whether the car has a warranty or is sold “as is” or without warranties.

Dealers will often remove the window sticker that was on the car with the warranty representation and then have the customer sign a “window sticker” that has been marked “as is.” When the customer returns later for warranty service, he or she is shown the latter form and the warranty is denied.

It is important to note that any action that causes or tends to cause confusion with respect to the window sticker is a violation of the FTC Byer’s Guide Rule and actionable as an Unfair Business Practice.

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