Which of the following is considered an unfair and deceptive practice under the Federal Trade Commission Used Car Rule?

The correct answer is the representation that a used automobile is sold with a warranty when it is not. This action violates the Federal Trade Commission (FTC) Used Car Rule because it misleads consumers about their rights and the condition of the vehicle they are purchasing. The rule requires that dealers clearly disclose whether a vehicle is being sold with a warranty, and failing to do so can create an unfair advantage for the seller while putting the buyer at a significant disadvantage. Misrepresentation regarding warranties may lead to consumers thinking they are protected when, in fact, they are not, which is fundamentally deceptive.

Providing a written warranty, not offering a warranty at all, and offering extended warranties only are not considered unfair practices under this rule unless they involve misrepresentation or lack of necessary disclosures. Offering a warranty or not offering one at all is permissible, as long as the dealer is transparent about the terms and conditions related to any warranties or lack thereof. It's the act of falsely claiming a warranty exists that crosses the line into deceptive practice.