Groups Ask FTC For ‘Lemon Law’ Database

U.S. consumer groups urged the Federal Trade Commission to create a nationwide database where customers could find repair information on any car an auto maker buys back to satisfy a complaining owner. Public Citizen, the Public Interest Research Group and 11 other organizations asked the FTC to close loopholes in so-called lemon laws that require auto makers to say whether a car has been repurchased. Consumer groups and representatives of auto makers, such as the Alliance of Automobile Manufacturers, recently broke off talks on the issue that had begun in 1996. Sacramento-based Consumers for Auto Reliability and Safety estimated that 100,000 new cars are bought back annually under lemon laws passed by states. Gloria Bergquist, a spokeswoman for the auto makers, said the group couldn’t agree to placement of a lemon label on all vehicles. Auto makers buy back some mechanically sound cars to satisfy customers for other reasons, such as the fact that the buyer decided they didn’t like the vehicle’s color, she said.

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