METI has Compiled Improved Measures for Proper Purchasing and Other Deals for Used Vehicles

The number of consumers who have encountered various troubles when selling their vehicles to used vehicle buyers has been increasing recently. The National Consumer Affairs Center of Japan has reported the following troubles:

1. Expensive cancellation fees on deals
2. Unilateral refusal to cancel deals
3. Reduced valuations below the prices agreed in prior contracts
4. Unsolicited approaches by buyers following visits to websites that introduce vehicle appraisal services

To overcome these troubles, in December 2012 METI invited academic experts, lawyers, and consumer and industry organizations to join a study group (Study Group on Proper Purchasing and Other Deals of Used Vehicles) to discuss better measures to promote the healthy development of the used car trade and vehicle appraisal services, as well as for improving consumer trust in the industry.

Based on the results of the study group's recommendations, METI has compiled a set of policies for the used car trade and related business issues.

1. The used car trade should formulate contract provisions as a model to specify conditions of deals and rules of conduct in which prohibitions are specified, such as against dishonest decreasing of vehicle values, as well as conducting such provisions properly.
2. The used car trade should prohibit requiring consumers to pay a cancellation fee excessively beyond the actual expenses necessary for the purchase, such as a procedural fee for changing ownership of a vehicle, and also provide consumers with an expected actual fee that would be necessary for buyers' purchasing of consumer vehicles at the first step of soliciting the consumers.
3. Specific measures for consumers should be formulated, such as a system in which those who visit websites that mediate vehicle appraisal services are able to decide if they agree to be solicited by vehicle buyers.
4. The industry should make use of experts who have sufficient knowledge and experience for consumer consultation.
5. A system for communication and discussion among people involved should be created for the purpose of effective practice of measures that will improve consumer trust, while conducting follow-ups on the system, such as regular reporting on such measures.

February 12, 2013

Automobile Division, Manufacturing Industries Bureau