Lemon Laundering: Federal Trade Commission News Release

"The Federal Trade Commission is examining whether consumers who purchase [lemon] cars are adequately informed about the car's history.

The FTC has initiated this effort in response to a petition from the Consumers for Auto Reliability and Safety and other consumer groups (collectively "Consumer Coalition") requesting enforcement action to look into the alleged auto industry practice of reselling 'lemon buybacks' without disclosing the car's prior history to the subsequent purchaser."

– Federal Trade Commission News Release, April 29, 1996

 

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