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As Enacted

Sec. 118. (a) Every manufacturer of motor vehicles shall furnish Notification of 8 notincation of any defect in any motor vehicle or motor vehicle equip- defect. mont produced by such manufacturer which he determines, in good faith, relates to motor vehicle safety, to the purchaser (where known to the manufacturer) of such motor vehicle or motor vehicle equipment, within a reasonable time after such manufacturer has discovered such defect.

(b) The notification required by subsection (a) shall be accom- Notification plished

by oertified (1) by certified mail to the first purchaser (not including any mail. dealer of such manufacturer) of the motor vehicle or motor vehicle equipment containing such a defect, and to any subsequent purchaser to whom has been transferred any warranty on such motor vehicle or motor vehicle equipment; and

(2) by certified mail or other more expeditious means to the dealer or dealers of such manufacturer to whom such motor

vehicle or equipment was delivered. (c) The notification required by subsection (a) shall contain a clear description of such defect, an evaluation of the risk to traffic safety reasonably related to such defect, and a statement of the mensures to be taken to repair such defect.

(d) Every manufacturer of motor vehicles shall furnish to the Secretary a true or representative copy of all notices, bulletins, and other communications to the dealers of such manufacturer or purchasers of motor vehicles or motor vehicle equipment of such manufacturer regarding any defect in such vehicle or equipment sold or serviced by such dealer. The Secretary shall disclose so much of the information contained in such notice or other information obtained under section 112(a) to the public as he deams will assist in carrying out the purposes of this Act, but he shall not disclose any information which contains or relates to a trade secret or other matter referred to in section 1905 of title 18 of the United States Code unless he determines that 62 Stat. 791. it is necessary to carry out the purposes of this Act.

(e) If through testing, inspection, investigation, or research carried out pursuant to this title, or examination of reports pursuant to subsection (d) of this section, or otherwise, the Secretary determines that any motor vehicle or item of motor vehicle equipment

(1) does not comply with an applicable Federal motor vehicle safety standard prescribed pursuant to section 103; or

(2) contains a defect which relates to motor vehicle safety; then he shall immediately notify the manufacturer of such motor vehicle or item of motor vehicle equipment of such defect or failure to comply. The notice shall contain the findings of the Secretary and shall include all information upon which the findings are based. The Secretary shall afford such manufacturer an opportunity to present his views and evidence in support thereof, to establish that there is no failure of compliance or that the alleged defect does not affect motor vehicle safety. If after such presentation by the manufacturer tho Secretary determines that such vehicle or item of equipment does not comply with applicable Federal motor vehicle safety standards, or contains a defect which relates to motor vehicle safety, the Secretary shall direct the manufacturer to furnish the notification specified in subsection (c) of this section to the purchasor of such motor vehicle or itom of motor vehicle equipment as provided in subsections (a) and (b) of this section.

Conference Report

Senate Report 1919, Pages 20 and 21

NOTIFICATION

Sections 116 (a), (b), and (c) of the Senate bill require the manufacturer of motor vehicles to furnish notification of any defect in any vehicle or equipment produced by him which he determines relates to motor vehicle safety to the purchaser (where known) within a reasonable time after discovery of such defect by the manufacturer. This notification is required to be accomplished by certified mail to the first purchaser and to the dealer or dealers to whom such vehicle or equipment was delivered. The notification shall contain a clear description of the defect and evaluation of the risk of traffic safety related thereto and a statement of the measures to be taken to repair the defect.

Sections 113 (a), (b), and (c) of the House amendment are the same as the Senate bill with the exception that notification is required to be accomplished by certified mail not only to the first purchaser but to any subsequent purchaser to whom has been transferred any warranty on such vehicle or equipment.

Sections 113 (a), (b), and (c) of the proposed conference substitute are the same as the House amendment.

Subsection (d) of section 116 of the Senate bill requires the manufacturer of motor vehicles to furnish the Secretary a true or representative copy of all notices, bulletins, and other communications to the dealers or purchasers of such vehicles or equipment regarding any defect therein. The Secretary shall disclose so much of the information contained in such notice or other information obtained under section 114(a) (his authority to conduct independent inspection and investigation) to the public as he deems will assist in carrying out the purposes of this act. He is required not to disclose any information which contains or relates to a trade secret unless he determines that it is necessary to carry out the purposes of this act.

Section 113(d) of the House amendment requires every manufacturer of motor vehicles to furnish the Secretary promptly a true and representative copy of any notice, bulletin, or like written communica- 21 tion to the dealers of such manufacturer or purchasers and users of such manufacturer's products regarding the existence or correction of any defect in vehicles or equipment as delivered by that manufacturer. If the Secretary determines the defect is a safety defect he is required to review with the manufacturer the action taken and proposed to be taken to accomplish effective notification to purchasers and users. If the manufacturer's action is inadequate to accomplish effective notification the Secretary shall order him to take further measures that are reasonable and necessary to accomplish such notice. If the manufacturer fails to promptly comply, an injunction to compel compliance may be sought. The Secretary, if he determines after review that publication by him will result in effecting a substantial additional number of corrections, shall disclose to the public so much of the information contained in the notice or other information obtained under section 112(a) (his authority to conduct independent inspection)

as he deems necessary for this purpose. The Secretary is precluded from disclosing information which contains or relates to a trade secret unless he determines that this disclosure is necessary to carry out this act.

Subsection (d) of section 113 of the proposed conference substitute is the same as subsection (d) of section 116 of the Senate bill, with the exception of a minor conforming change.

Subsection (e) of section 116 of the Senate bill provides that if the Secretary determines that any vehicle or item of equipment does not comply with the Federal safety standards or contains a defect relating to motor vehicle safety as a result either of testing, inspections, investigations, or research carried out by him pursuant to this title or through an examination of the reports which manufacturers are required to file with him under subsection (d) of this section (relating to notification of defects to dealers) he is required to notify the manufacturer of such defect or failure to comply. The notice is required to contain the Secretary's findings and all information on which such findings are based. He then is required to afford the manufacturer an opportunity to be heard and to establish that there is no failure to comply or that the alleged defect does not affect motor vehicle safety. Thereafter, if the Secretary determines there is not compliance or there is a defect relating to motor vehicle safety he is required to direct the manufacturer to furnish the notification specified in subsection (c) of this section to the purchaser as provided in subsections (a) and (b) of this section.

The House amendment contains no corresponding provision.

Subsection (e) of section 113 of the proposed conference substitute is the same as section 116(e) of the Senate bill with the exception of a minor conforming change.

House Passed Act

Congressional Record-House
August 17, 1966, 19672

"Soc. 113. (a) Every manufacturer of mo "(2) by certined mall or other more extor vehicles shall furnish notifcation of any peditious means to the dealer of dealers of dofoct in any motor vehicle or motor vehiclo such manufacturer to whom such motor equipment produced by such manufacturer vehicle or equipment was delivered. which he determines, in good faith, relatos "(c) The notiacation required by subsecto motor vehiclo safety, to the purchaser ton (a) shall contain a clear description of (where known to the manufacturer) of such ruch defect, an evaluation of the risk to motor vehicle or motor vehicle equipment, tramc safety reasonably related to such do within a reasonable time after such manu. foct, and a statengeat of the measures to be facturer has discovered such defect.

takon to repair such defect. “(b) The notification required by subuoc- :"(d) Every manufacturer of motor votion (a) shall be accomplished

hicles shall furnlab to the secretary "(1) by certinod mail to the Orst pur. promptly a true and representative copy a chasor (dot including any dealer of such

any notice, bulletin, or like written commu. manufacturer) of the motor vehicle or motor

nications to the dealers of such manufacvehicle equipment containing such a defect,

turer or purchasers and users of such manu. and to any subsoquent purchaser to whom

facturer's products regarding the edstence has been transferred any warranty on such

or correction of any defect in motor vehicles motor vehicle of motor vehiclo oquipment;

or Items of motor vehicle equipment as deand

Uvered by such manufacturer. If the Secre- section 110(a). The Secretary may detertary determines that such defect 18 a safety mine after such review whether publication defect he shall review with the manufacturer by him of the Information contained in such the action taken and proposed to be taken to notices, bulletins, communications relating accomplish effective notification of purchas. to a safety defect will result in effecting a ers and users. If the action taken and pro- substantial additional number of correcposed to be taken by the manufacturer with tions, and if the Secretary so determines, he respect to a safety defect is inadequate to shall disclose to the public so much of the accomplish effective notifcation of purchas- information contained in such actices or ers and users, the Secretary shall order the other information obtained under section manufacturer to take such further measures 112(a) as he considers necessary for such as are reasonable and necessary to accom- purpose. The Secretary shall not disclose plish such notice and, if the manufacturer any information which contains or relates to does not comply promptly with such order, a trade secret or other matter referred to in an injunction to compel compliance may be section 1905 of title 18 of the United States sought in accordance with the provisions of Code unless he determines that such dis

closure is necessary for such purposes.

House Debate

Congressional Record-House
August 17, 1966, 19630 and 19631

Mr. SPRINGER.

And what about those who actually have defects, the manufacturer must build the new cars—what must they do notify the owner and dealer, if they are under this bill? Taking the steps in not still the same. Such notice must also sequence, the first thing they will do is be given to a later owner i he has taken cooperate and assist the Secretary of over & warranty still in effect. Then the Commerce in his deliberations and de- car builder must remedy the defect. In cisions about sensible, practical safety the case of autos still in the dealer's in. standards. They will not dominate this tentory, they may be returned or fixed activity, but they will contribute. Then, by the dealer at the expense of the manuof course, they must adhere to the stand- facturer. Those in the hands of owners ards when actually building production will be fixed promptly by & dealer. models. Having built one, the manufac- Should the manufacturer fall or refuse turer must place a certificate in a perma- to carry out his responsibilities under nent fashion which indicates that the these sections, it can be assessed penal. 19631 vehicle does in fact measure up to the ties of $1,000 per car, and the Secretary standards in effect when it was built. may also seek the help of the courts by Records must be kept which can be in- way of injunction to force compliance spected to determine compliance.

and stop the violation. If, after all precaution and surveillance, cars do get by and are delivered which

Congressional Record-House
August 17, 1966, 19654

Mr. COHELAN.

This legislation should be passed, but fails to provide penalties if the manufacit also should be improved. The bill now

turers do not comply. Civil penalties are authorizes the Secretary of Commerce to certainly in order if this reasonable reorder manufacturers to notify owners of quirement is to have any real meaning. any defects that are discovered, but it

House Committee Report

House Report 1776, Pages 27 and 28

NOTIFICATION OF DEFECTS

Section 113(a) requires every vehicle manufacturer to give notice of

any defect in any vehicle or equipment produced by him which he determines relates to safety to the purchaser (where known to him) within a reasonable time after the manufacturer discovers such defect.

Section 113(b) provides that the notification will be accomplished by certified mail to the first purchaser (other than a dealer) and to any subsequent purchaser to whom has been transferred any warranty upon such vehicle or equipment and by certified mail or other expeditious means to the dealer to whom such vehicle or equipment was delivered.

Section 113(c) requires the notification to contain a clear descrip- 28 tion of the defect and the evaluation of the risk to traffic safety reason. ably related to the defect and a statement of the measures to be taken to repair the defect.

Section 113(d) requires each manufacturer of motor vehicles to furnish the Secretary promptly a copy of any notice, bulletin, or other written notification to his dealers, to purchasers, and to users of his products regarding the existence or correction of any defect. If the Secretary determines the defect is a safety defect, he reviews with the manufacturer the action taken or proposed to be taken with the accompanying notification to purchasers and dealers. If the action taken or proposed to be taken is inadequate to accomplish effective notification, the Secretary is required to order the manufacturer to take such further measures as are reasonable and necessary to give notice and if he fails to promptly comply, an injunction to compel compliance may be sought in accordance with section 109(a). If the Secretary determines after a review by him that publication by him of the information contained in the notice, bulletin, and communication issued by the manufacturer under this section will result in effecting a substantial additional number of corrections, he is required to disclose to the public so much of the information contained in the notice or other information obtained under section 112(a) as he considers necessary to effect a substantial additional number of corrections. The Secretary shall not disclose any information which contains or relates to a trade secret or other matter referred to in 18 U.S.C. 1905 unless such disclosure is necessary to effect a substantial number of corrections.

This section was included to afford a means for uniform and prompt notification to vehicle owners of the discovery of any defects related to safety. “Defect” is a defined term which includes any defect in performance, construction, components, or materials in motor vehicles or motor vehicle equipment. The provisions of this section do not alter other courses available to the Secretary, with respect to the deficiencies which necessitate notification, such as the imposition of a civil penalty or the seeking of injunctive relief. It is the committee's intention that the Secretary will exercise his authority

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