NHTSA amends defect and noncompliance notification rule

Manufacturers can provide refund for defective equipment

Posted September 15, 2015

On September 14, 2015, the National Highway Traffic Safety Administration (NHTSA) issued a final rule that amends a regulation requiring motor vehicle manufacturers and replacement equipment manufacturers to notify owners and purchasers of a defect or noncompliance in vehicles or equipment that they produced.

The amendment clarifies that a manufacturer of replacement equipment providing a defect or noncompliance notification can inform the purchaser of the manufacturer’s intent to remedy the defect or noncompliance by refunding the purchase price of the replacement equipment. The regulation was amended so that it conforms to changes in the defect and noncompliance remedy provisions in the National Traffic and Motor Vehicle Safety Act (Safety Act) contained in the Moving Ahead for Progress in the 21st Century Act (MAP– 21).

The rule is effective November 13, 2015. Petitions for reconsideration must be received by October 29, 2015.

Click here to view the final rule.

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