49 CFR Part 577

Nat’l Highway Traffic Safety Admin., DOT
and when so reproduced or transferred
the original form may be treated as a
duplicate.
§ 576.8

Malfunctions covered.

For purposes of this part, ‘‘malfunctions that may be related to motor vehicle safety’’ shall include, with respect to a motor vehicle or item of
motor vehicle equipment, any failure
or malfunction beyond normal deterioration in use, or any failure of performance, or any flaw or unintended deviation from design specifications, that
could in any reasonably foreseeable
manner be a causative factor in, or aggravate, an accident or an injury to a
person.

PART 577—DEFECT AND
NONCOMPLIANCE NOTIFICATION
Sec.
577.1 Scope.
577.2 Purpose.
577.3 Application.
577.4 Definitions.
577.5 Notification pursuant to a manufacturer’s decision.
577.6 Notification pursuant to Administrator’s decision.
577.7 Time and manner of notification.
577.8 Disclaimers.
577.9 Conformity to statutory requirements.
577.10 Follow-up notification.
577.11 Reimbursement notification.
577.12 Notification pursuant to an accelerated remedy program.
577.13 Notification to dealers and distributors.
577.14 Labeling for owner notification letter
envelope.
AUTHORITY: 49 U.S.C. 30102, 30103, 30116–121,
30166; delegation of authority at 49 CFR 1.95
and 49 CFR 501.8.
SOURCE: 41 FR 56816, Dec. 30, 1976, unless
otherwise noted.

jstallworth on DSKBBY8HB2PROD with CFR

§ 577.1

Scope.

This part sets forth requirements for
manufacturer notification to owners,
dealers, and distributors of motor vehicles and items of replacement equipment about a defect that relates to
motor vehicle safety or a noncompliance with a Federal motor vehicle safety standard.
[69 FR 34959, June 23, 2004]

§ 577.4
§ 577.2 Purpose.
The purpose of this part is to ensure
that notifications of defects or noncompliances adequately inform and effectively motivate owners of potentially defective or noncomplying motor
vehicles or items of replacement equipment to have such vehicles or equipment inspected and, where necessary,
remedied as quickly as possible. It is
also to ensure that dealers and distributors of motor vehicles and items
of replacement equipment are made
aware of the existence of defects and
noncompliances and of their rights and
responsibilities with regard thereto.
[41 FR 56816, Dec. 30, 1976, as amended at 69
FR 34959, June 23, 2004]

§ 577.3 Application.
This part applies to manufacturers of
complete motor vehicles, incomplete
motor vehicles, and replacement equipment. In the case of vehicles manufactured in two or more stages, compliance by either the manufacturer of the
incomplete vehicle, any subsequent
manufacturer, or the manufacturer of
affected replacement equipment, shall
be considered compliance by each of
those manufacturers.
§ 577.4 Definitions.
For the purposes of this part:
Act means 49 U.S.C. Chapter 30101–
30169.
Administrator means the Administrator of the National Highway Traffic
Safety Administration or his delegate.
First purchaser means the first purchaser in good faith for a purpose other
than resale.
Leased motor vehicle means any motor
vehicle that is leased to a person for a
term of at least four months by a lessor who has leased five or more vehicles in the twelve months preceding
the date of notification by the vehicle
manufacturer of the existence of a
safety-related defect or noncompliance
with a Federal motor vehicle safety
standard in the motor vehicle.
Lessee means a person who is the lessee of a leased motor vehicle as defined
in this section.
Lessor means a person or entity that
is the owner, as reflected on the vehicle’s title, of any five or more leased

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§ 577.5

49 CFR Ch. V (10–1–18 Edition)

vehicles (as defined in this section), as
of the date of notification by the manufacturer of the existence of a safetyrelated defect or noncompliance with a
Federal motor vehicle safety standard
in one or more of the leased motor vehicles.
Owners includes purchaser.

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[41 FR 56816, Dec. 30, 1976, as amended at 60
FR 17270, Apr. 5, 1995]

§ 577.5 Notification pursuant to a manufacturer’s decision.
(a) When a manufacturer of motor vehicles or replacement equipment determines that any motor vehicle or item
of replacement equipment produced by
the manufacturer contains a defect
that relates to motor vehicle safety, or
fails to conform to an applicable Federal motor vehicle safety standard, or
the manufacturer files a defect or noncompliance information report under 49
CFR part 573, the manufacturer shall
provide notification in accordance with
§ 577.7(a), unless the manufacturer is
exempted by the Administrator (pursuant to 49 U.S.C. 30118(d) or 30120(h))
from giving such notification. The notification shall contain the information specified in this section. The information required by paragraphs (b) and
(c) of this section shall be presented in
the form and order specified. The information required by paragraphs (d)
through (h) of this section may be presented in any order. Except as authorized by the Administrator, the manufacturer shall submit a copy of its proposed owner notification letter, including any provisions or attachments related to reimbursement, to NHTSA’s
Recall Management Division (NVS–215)
no fewer than five (5) Federal Government business days before it intends to
begin mailing it to owners. The manufacturer shall mark the outside of each
envelope in which it sends an owner notification letter with a notation that
includes the phrase ‘‘SAFETY RECALL NOTICE,’’ all in capital letters
and in a type that is larger than that
used in the address section, and is also
distinguishable from the other type in
a manner other than size. It shall also
imprint on the outside of this envelope
a label in accordance with § 577.14. Except where the format of the envelope
has been previously approved by

NHTSA’s Recall Management Division
(NVS–215), each manufacturer must
submit the envelope format it intends
to use to that division at least five (5)
Federal Government business days before mailing the notification to owners.
Submission of envelopes and proposed
owner notification letters shall be
made by the means identified in 49 CFR
573.9. Notification sent to an owner
whose address is in the Commonwealth
of Puerto Rico shall be written in both
English and Spanish.
(b) At the top of the notification,
there must be the statement ‘‘IMPORTANT SAFETY RECALL,’’ in all capital letters and in a type size that is
larger than that used in the remainder
of the letter. Then immediately below,
for vehicle recalls, there must be the
statement ‘‘This notice applies to your
vehicle, (manufacturer to insert VIN
for the particular vehicle).’’ If VIN
placement is not possible in this location, the VIN must then be placed in
another conspicuous location within
the notification. Immediately below
the foregoing, there must be the opening statement: ‘‘This notice is sent to
you in accordance with the National
Traffic and Motor Vehicle Safety Act.’’
(c) Whichever of the following statements is appropriate:
(1) ‘‘(Manufacturer’s name or division) has decided that a defect which
relates to motor vehicle safety exists
in (identified motor vehicles, in the
case of notification sent by a motor vehicle manufacturer; identified replacement equipment, in the case of notification sent by a replacement equipment manufacturer);’’ or
(2) ‘‘(Manufacturer’s name or division) has decided that (identified motor
vehicles, in the case of notification
sent by a motor vehicle manufacturer;
identified replacement equipment, in
the case of notification sent by a replacement equipment manufacturer)
fail to conform to Federal Motor Vehicle Safety Standard No. (number and
title of standard).’’
(d) When the manufacturer determines that the defect or noncompliance may not exist in each such vehicle
or item of replacement equipment, he
may include an additional statement
to that effect.

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Nat’l Highway Traffic Safety Admin., DOT
(e) A clear description of the defect
or noncompliance, which shall include—
(1) An identification of the vehicle
system or particular item(s) of motor
vehicle equipment affected.
(2) A description of the malfunction
that may occur as a result of the defect
or noncompliance. The description of a
noncompliance with an applicable
standard shall include, in general
terms, the difference between the performance of the noncomplying vehicle
or item of replacement equipment and
the performance specified by the standard;
(3) A statement of any operating or
other conditions that may cause the
malfunction to occur; and
(4) A statement of the precautions, if
any, that the owners should take to reduce the chance that the malfunction
will occur before the defect or noncompliance is remedied.
(f) An evaluation of the risk to motor
vehicle safety reasonably related to the
defect or noncompliance.
(1) When vehicle crash is a potential
occurrence, the evaluation shall include whichever of the following is appropriate:
(i) A statement that the defect or
noncompliance can cause vehicle crash
without prior warning; or
(ii) A description of whatever prior
warning may occur, and a statement
that if this warning is not heeded, vehicle crash can occur.
(2) When vehicle crash is not the potential occurrence, the evaluation
must include a statement indicating
the general type of injury to occupants
of the vehicle, or to persons outside the
vehicle, that can result from the defect
or noncompliance, and a description of
whatever prior warning may occur.
(g) A statement of measures to be
taken to remedy the defect or noncompliance, in accordance with paragraph (g)(1) or (g)(2) of this section,
whichever is appropriate.
(1) When the manufacturer is required by the Act to remedy the defect
or noncompliance without charge, or
when he will voluntarily so remedy in
full conformity with the Act, he shall
include—
(i) A statement that he will cause
such defect to be remedied without

§ 577.5
charge, and whether such remedy will
be by repair, replacement, or refund of
the purchase price (in the case of remedy of a vehicle, less depreciation).
(ii) The earliest date on which the defect or noncompliance will be remedied
without charge. In the case of remedy
by repair, this date shall be the earliest
date on which the manufacturer reasonably expects that dealers or other
service facilities will receive necessary
parts and instructions. The manufacturer shall specify the last date, if any,
on which he will remedy tires without
charge.
(iii) In the case of remedy by repair
through the manufacturer’s dealers or
other service facilities:
(A) A general description of the work
involved in repairing the defect or noncompliance; and
(B) The manufacturer’s estimate of
the time reasonably necessary to perform the labor required to correct the
defect or noncompliance.
(iv) In the case of remedy by repair
through service facilities other than
those of the manufacturer or its dealers:
(A) The name and part number of
each part must be added, replaced, or
modified;
(B) A description of any modifications that must be made to existing
parts, which shall also be identified by
name and part number;
(C) Information as to where needed
parts will be available;
(D) A detailed description (including
appropriate illustrations) of each step
required to correct the defect or noncompliance;
(E) The manufacturer’s estimate of
the time reasonably necessary to perform the labor required to correct the
defect or noncompliance; and
(F) The manufacturer’s recommendations of service facilities where the
owner should have the repairs performed.
(v) In the case of remedy by replacement, a description of the motor vehicle or item of replacement equipment
that the manufacturer will provide as a
replacement for the defective or noncomplying vehicle or equipment.
(vi) In the case of a remedy of a vehicle by refund of purchase price, the

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§ 577.6

49 CFR Ch. V (10–1–18 Edition)

method or basis for the manufacturer’s
assessment of depreciation.
(vii) A statement informing the
owner that he or she may submit a
complaint to the Administrator, National Highway Traffic Safety Administration, 1200 New Jersey Ave., SE.,
Washington, DC 20590; or call the tollfree Vehicle Safety Hotline at 1–888–
327–4236 (TTY: 1–800–424–9153); or go to
http://www.safercar.gov, if the owner believes that:
(A) The manufacturer, distributor, or
dealer has failed or is unable to remedy
the defect or noncompliance without
charge.
(B) The manufacturer has failed or is
unable to remedy the defect or noncompliance without charge—
(1) (In the case of motor vehicles or
items of replacement equipment, other
than tires) within a reasonable time,
which is not longer than 60 days in the
case of repair after the owner’s first
tender to obtain repair following the
earliest repair date specified in the notification, unless the period is extended
by Administrator.
(2) (In the case of tires) after the date
specified in the notification on which
replacement tires will be available.
(2) When the manufacturer is not required to remedy the defect or noncompliance without charge and he will
not voluntarily so remedy, the statement shall include—
(i) A statement that the manufacturer is not required by the Act to remedy without charge.
(ii) A statement of the extent to
which the manufacturer will voluntarily remedy, including the method of
remedy and any limitations and conditions imposed by the manufacturer on
such remedy.
(iii) The manufacturer’s opinion
whether the defect or noncompliance
can be remedied by repair. If the manufacturer believes that repair is possible, the statement shall include the
information specified in paragraph
(g)(1)(iv) of this section, except that;
(A) The statement required by paragraph (g)(1)(iv)(A) of this section shall
also indicate the suggested list price of
each part.
(B) The statement required by paragraph (g)(1)(iv)(C) of this section shall
also indicate the manufacturer’s esti-

mate of the date on which the parts
will be generally available.
(h) Any lessor who receives a notification of a determination of a safetyrelated defect or noncompliance pertaining to any leased motor vehicle
shall send a copy of such notice to the
lessee as prescribed by § 577.7(a)(2)(iv).
This requirement applies to both initial and follow-up notifications, but
does not apply where the manufacturer
has notified a lessor’s lessees directly.
(Authority: Secs. 108, 112, and 119, Pub. L. 89–
563; 80 Stat. 718; secs. 102, 103, and 104, Pub.
L. 93–492, 88 Stat. 1470 (15 U.S.C. 1397, 1401,
1408, and 1411–1420); delegation of authority
at 49 CFR 1.50)
[41 FR 56816, Dec. 30, 1976, as amended at 46
FR 6971, Jan. 22, 1981; 46 FR 28657, May 28,
1981; 60 FR 17270, Apr. 5, 1995; 61 FR 279, Jan.
4, 1996; 68 FR 18142, Apr. 15, 2003; 70 FR 35557,
June 21, 2005; 72 FR 32016, June 11, 2007; 78 FR
51422, Aug. 20, 2013; 79 FR 43678, July 28, 2014;
80 FR 55037, Sept. 14, 2015]

§ 577.6 Notification pursuant to Administrator’s decision.
(a) Agency-ordered notification. When
a manufacturer is ordered pursuant to
49 U.S.C. 30118(b) to provide notification of a defect or noncompliance, he
shall provide such notification in accordance with §§ 577.5 and 577.7, except
that the statement required by paragraph (c) of § 577.5 shall indicate that
the decision has been made by the Administrator of the National Highway
Traffic Safety Administration.
(b) Provisional notification. When a
manufacturer does not provide notification as required by paragraph (a) of
this section, and an action concerning
the Administrator’s order to provide
such notification has been filed in a
United States District Court, the manufacturer shall, upon the Administrator’s further order, provide in accordance with paragraph (b) of § 577.7 a provisional notification containing the information specified in this paragraph,
in the order and, where specified, the
form of paragraphs (b)(1) through
(b)(12) of this section.
(1) An opening statement: ‘‘This notice is sent to you in accordance with
the requirements of the National Traffic and Motor Vehicle Safety Act.’’
(2) Whichever of the following statements is appropriate:

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Nat’l Highway Traffic Safety Admin., DOT
(i) ‘‘The Administrator of the National Highway Traffic Safety Administration has decided that a defect
which relates to motor vehicle safety
exists in (identified motor vehicles, in
the case of notification sent by a manufacturer of motor vehicles; identified
replacement equipment, in the case of
notification sent by a manufacturer of
replacement equipment);’’ or
(ii) ‘‘The Administrator of the National Highway Traffic Safety Administration has decided that (identified
motor vehicles in the case of notification sent by a motor vehicle manufacturer; identified replacement equipment, in the case of notification sent
by a manufacturer of replacement
equipment) fail to conform to federal
Motor Vehicle Safety Standard No.
(number and title of standard).’’
(3) When the Administrator decides
that the defect or noncompliance may
not exist in each such vehicle or item
of replacement equipment, the manufacturer may include an additional
statement to that effect.
(4) The statement: ‘‘(Manufacturer’s
name or division) is contesting this determination in a proceeding in the Federal courts and has been required to
issue this notice pending the outcome
of the court proceeding.’’
(5) A clear description of the Administrator’s stated basis for his decision,
as provided in his order, including a
brief summary of the evidence and reasoning that the Administrator relied
upon in making his decision.
(6) A clear description of the Administrator’ stated evaluation as provided
in his order of the risk to motor vehicle safety reasonably related to the defect or noncompliance.
(7) Any measures that the Administrator has stated in his order should be
taken by the owner to avoid an unreasonable hazard resulting from the defect or noncompliance.
(8) A brief summary of the evidence
and reasoning upon which the manufacturer relies in contesting the Administrator’s determination.
(9) A statement regarding the availability of remedy and reimbursement
in accordance with paragraph (b)(9)(i)
or (9)(ii) of this section, whichever is
appropriate.

§ 577.6
(i) When the purchase date of the vehicle or item of equipment is such that
the manufacturer is required by the
Act to remedy without charge or to reimburse the owner for reasonable and
necessary repair expenses, he shall include—
(A) A statement that the remedy will
be provided without charge to the
owner if the Court upholds the Administrator’s decision;
(B) A statement of the method of
remedy. If the manufacturer has not
yet determined the method of remedy,
he will select either repair, replacement with an equivalent vehicle or
item of replacement equipment, or refund of the purchase price (in the case
of remedy of a vehicle, less depreciation); and
(C) A statement that, if the Court upholds the Administrator’s decision, he
will reimburse the owner for any reasonable and necessary expenses that
the owner incurs (not in excess of any
amount specified by the Administrator) in repairing the defect or noncompliance following a date, specified
by the manufacturer, which shall not
be later than the date of the Administrator’s order to issue this notification.
(ii) When the manufacturer is not required either to remedy without charge
or to reimburse, he shall include—
(A) A statement that he is not required to remedy or reimburse, or
(B) A statement of the extent to
which he will voluntarily remedy or reimburse, including the method of remedy, if then known, and any limitations and conditions on such remedy or
reimbursement.
(10) A statement indicating whether,
in the manufacturer’s opinion, the defect or noncompliance can be remedied
by repair. When the manufacturer believes that such remedy is feasible, the
statement shall include:
(i) A general description of the work
and the manufacturer’s estimate of the
costs involved in repairing the defect
or noncompliance;
(ii) Information on where needed
parts and instructions for repairing the
defect or noncompliance will be available, including the manufacturer’s estimate of the day on which they will be
generally available;

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§ 577.7

49 CFR Ch. V (10–1–18 Edition)

(iii) The manufacturer’s estimate of
the time reasonably necessary to perform the labor required to correct the
defect or noncompliance; and
(iv)
The
manufacturer’s
recommendations of service facilities
where the owner could have the repairs
performed, including (in the case of a
manufacturer required to reimburse if
the Administrator’s decision is upheld
in the court proceeding) at least one
service facility for whose charges the
owner will be fully reimbursed if the
Administrator’s decision is upheld.
(11) A statement that further notice
will be mailed by the manufacturer to
the owner if the Administrator’s decision is upheld in the court proceeding.
(12) An address of the manufacturer
where the owner may write to obtain
additional information regarding the
notification and remedy.
(c) Post-litigation notification. When a
manufacturer does not provide notification as required in paragraph (a) of
this section and the Administrator prevails in an action commenced with respect to such notification, the manufacturer shall, upon the Administrator’s further order, provide notification
in accordance with paragraph (b) of
§ 577.7 containing the information specified in paragraph (a) of this section,
except that—
(1) The statement required by paragraph (c) of § 577.5 shall indicate that
the decision has been made by the Administrator and that his decision has
been upheld in a proceeding in the Federal courts; and
(2) When a provisional notification
was issued regarding the defect or noncompliance and the manufacturer is required under the Act to reimburse—
(i) The manufacturer shall state that
he will reimburse the owner for any
reasonable and necessary expenses that
the owner incurred (not in excess of
any amount specified by the Administrator) for repair of the defect or noncompliance of the vehicle or item of
equipment on or after the date on
which provisional notification was ordered to be issued and on or before a
date not sooner than the date on which
this notification is received by the
owner. The manufacturer shall determine and specify both dates.

(ii) The statement required by paragraph (g)(1)(vii) of § 577.5 shall also inform the owner that he may submit a
complaint to the Administrator if the
owner believes that the manufacturer
has failed to reimburse adequately.
(3) If the manufacturer is not required under the Act to reimburse, he
shall include—
(i) A statement that he is not required to reimburse, or
(ii) When he will voluntarily reimburse, a statement of the extent to
which he will do so, including any limitations and conditions on such reimbursement.
[41 FR 56816, Dec. 30, 1976, as amended at 60
FR 17271, Apr. 5, 1995; 80 FR 55037, Sept. 14,
2015]

§ 577.7 Time and manner of notification.
(a) The notification required by
§ 577.5 shall—
(1) Be furnished no later than 60 days
from the date the manufacturer files
its defect or noncompliance information report under part 573. In the event
that the remedy for the defect or noncompliance is not available at the time
of notification, the manufacturer shall
issue a second notification within a
reasonable time and in accordance with
the requirements of this part once that
remedy is available. The Administrator
may order a manufacturer to send the
notification to owners on a specific
date where the Administrator finds,
after consideration of available information and the views of the manufacturer, that such notification is in the
public interest. The factors that the
Administrator may consider include,
but are not limited to, the severity of
the safety risk; the likelihood of occurrence of the defect or noncompliance;
whether there is something that an
owner can do to reduce either the likelihood of occurrence of the defect or
noncompliance or the severity of the
consequences; whether there will be a
delay in the availability of the remedy
from the manufacturer; and the anticipated length of any such delay.
(2) Be accomplished—
(i) In the case of a notification required to be sent by a motor vehicle
manufacturer, by first class mail to
each person who is registered under

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Nat’l Highway Traffic Safety Admin., DOT
State law as the owner of the vehicle
and whose name and address are reasonably ascertainable by the manufacturer through State records or other
sources available to him. If the owner
cannot be reasonably ascertained, the
manufacturer shall notify the most recent purchaser known to the manufacturer. The manufacturer shall also provide notification to each lessee of a
leased motor vehicle that is covered by
an agreement between the manufacturer and a lessor under which the
manufacturer is to notify lessees directly of safety-related defects and
noncompliances.
(ii) In the case of a notification required to be sent by a replacement
equipment manufacturer—
(A) By first class mail to the most recent purchaser known to the manufacturer, and
(B) (Except in the case of a tire) if decided by the Administrator to be required for motor vehicle safety, by public notice in such manner as the Administrator may require after consultation with the manufacturer.
(iii) In the case of a manufacturer required to provide notification concerning any defective or noncomplying
tire, by first class or certified mail.
(iv) In the case of a notification to be
sent by a lessor to a lessee of a leased
motor vehicle, by first-class mail to
the most recent lessee known to the
lessor. Such notification shall be
mailed within ten days of the lessor’s
receipt of the notification from the vehicle manufacturer.
(b) The notification required by any
paragraph of § 577.6 shall be provided:
(1) Within 60 days after the manufacturer’s receipt of the Administrator’s
order to provide the notification, except that the notification shall be furnished within a shorter or longer period if the Administrator incorporates
in his order a finding that such period
is in the public interest; and
(2) In the manner and to the recipient
specified in paragraph (a) of this section.
(c) The notification required by
§ 577.13 shall—
(1) Be furnished within a reasonable
time after the manufacturer decides
that a defect that relates to motor vehicle safety or a noncompliance exists.

§ 577.7
In the case of defects or noncompliances that present an immediate and
substantial threat to motor vehicle
safety, the manufacturer shall transmit this notice to dealers and distributors within three business days of its
transmittal of the Defect and Noncompliance Information Report under
49 CFR 573.6 to NHTSA, except that
when the manufacturer transmits the
notice by other than electronic means,
the manufacturer shall transmit this
notice to dealers and distributors within five business days of its transmittal
of the Defect and Noncompliance Information Report to NHTSA. In all other
cases, the notification shall be provided in accordance with the schedule
submitted to the agency pursuant to
§ 573.6(c)(8)(ii), unless that schedule is
modified by the Administrator. The
Administrator may direct a manufacturer to send the notification to dealers on a specific date if the Administrator finds, after consideration of
available information and the views of
the manufacturer, that such notification is in the public interest. The factors that the Administrator may consider include, but are not limited to,
the severity of the safety risk; the likelihood of occurrence of the defect or
noncompliance; the time frame in
which the defect or noncompliance
may manifest itself; availability of an
interim remedial action by the owner;
whether a dealer inspection would
identify vehicles or items of equipment
that contain the defect or noncompliance; and the time frame in which the
manufacturer plans to provide the notification and the remedy to its dealers.
(2) Be accomplished—
(i) In the case of a notification required to be sent by a motor vehicle
manufacturer,
by
certified
mail,
verifiable electronic means such as receipts or logs from electronic mail or
satellite distribution system, or other
more expeditious and verifiable means
to all dealers and distributors of the
vehicles that contain the defect or noncompliance.
(ii) In the case of a notification required to be sent by a manufacturer of
replacement equipment or tires, by
certified mail, verifiable electronic
means such as receipts or logs from

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49 CFR Ch. V (10–1–18 Edition)

electronic mail or satellite distribution
system, or other more expeditious and
verifiable means to all dealers and distributors of the product that are
known to the manufacturer.
(iii) In those cases where a manufacturer of motor vehicles or items of
motor vehicle equipment provided the
recalled product(s) to a group of dealers or distributors through a central
office, notification to that central office will be deemed to be notice to all
dealers and distributors within that
group.
(iv) In those cases in which a manufacturer of motor vehicles or items of
motor vehicle equipment has provided
the recalled product to independent
dealers through independent distributors, the manufacturer may satisfy its
notification responsibilities by providing the information required under
this section to its distributors. In such
cases, the manufacturer must also instruct those distributors to transmit a
copy of the manufacturer’s notification
to known distributors and retail outlets along the distribution chain within
five working days from its receipt.
(d) Notwithstanding paragraph (c)(1)
of this section, where the recall is
being conducted pursuant to an order
issued by the Administrator under 49
U.S.C. 30118(b), notification required by
§ 577.13 shall be given on or before the
date prescribed in the Administrator’s
order.

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[41 FR 56816, Dec. 30, 1976, as amended at 60
FR 17271, Apr. 5, 1995; 69 FR 34959, June 23,
2004; 70 FR 38814, July 6, 2005; 78 FR 51422,
Aug. 20, 2013; 79 FR 43678, July 28, 2014]

§ 577.8 Disclaimers.
(a) A notification sent pursuant to
§§ 577.5, 577.6, 577.9 or 577.10 regarding a
defect which relates to motor vehicle
safety shall not, except as specifically
provided in this part, contain any
statement or implication that there is
no defect, that the defect does not relate to motor vehicle safety, or that
the defect is not present in the owner’s
or lessee’s vehicle or item of replacement equipment. This section also applies to any notification sent to a lessor or directly to a lessee by a manufacturer.
(b) A notification sent pursuant to
§§ 577.5, 577.6, 577.9 or 577.10 regarding a

noncompliance with an applicable
motor vehicle safety standard shall
not, except as specifically provided in
this part, contain any statement or implication that there is not a noncompliance, or that the noncompliance
is not present in the owner’s or lessee’s
vehicle or item of replacement equipment. This section also applies to any
notification sent to a lessor or directly
to a lessee by a manufacturer.
[60 FR 17272, Apr. 5, 1995]

§ 577.9 Conformity
quirements.

to

statutory

A notification that does not conform
to the requirements of this part is a
violation of the Act.
§ 577.10

Follow-up notification.

(a) If, based on quarterly reports submitted pursuant to § 573.7 of this part
or other available information, the Administrator decides that a notification
of a safety-related defect of a noncompliance with a Federal motor vehicle safety standard sent by a manufacturer has not resulted in an adequate
number of vehicles or items of equipment being returned for remedy, the
Administrator may direct the manufacturer to send a follow-up notification in accordance with this section.
The scope, timing, form, and content of
such follow-up notification will be established by the Administrator, in consultation with the manufacturer, to
maximize the number of owners, purchasers, and lessees who will present
their vehicles or items of equipment
for remedy.
(b) The Administrator may consider
the following factors in deciding
whether or not to require a manufacturer to undertake a follow-up notification campaign:
(1) The percentage of covered vehicles or items of equipment that have
been presented for the remedy;
(2) The amount of time that has
elapsed since the prior notification(s);
(3) The likelihood that a follow-up
notification will increase the number
of vehicles or items of equipment receiving the remedy;
(4) The seriousness of the safety risk
from the defect or noncompliance;

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Nat’l Highway Traffic Safety Admin., DOT
(5) Whether the prior notification(s)
undertaken by the manufacturer complied with the requirements of the statute and regulations; and
(6) Such other factors as are consistent with the purpose of the statute.
(c) A manufacturer shall be required
to provide a follow-up notification
under this section only with respect to
vehicles or items of equipment that
have not been returned for remedy pursuant to the prior notification(s).
(d) Except where the Administrator
determines otherwise, the follow-up notification shall be sent to the same categories of recipients that received the
prior notification(s).
(e) A follow-up notification must include:
(1) A statement that identifies it as a
follow-up to an earlier communication;
(2) A statement urging the recipient
to present the vehicle or item of equipment for remedy; and
(3) Except as determined by the Administrator, the information required
to be included in the initial notification.
(f) The manufacturer shall mark the
outside of each envelope in which it
sends a follow-up notification in a
manner which meets the requirements
of § 577.5(a) of this part.
(g) Notwithstanding any other provision of this part, the Administrator
may authorize the use of other media
besides first-class mail for a follow-up
notification.
[60 FR 17272, Apr. 5, 1995, as amended at 68
FR 18142, Apr. 15, 2003]

jstallworth on DSKBBY8HB2PROD with CFR

§ 577.11

Reimbursement notification.

(a) Except as otherwise provided in
paragraph (e) of this section, when a
manufacturer of motor vehicles or replacement equipment is required to
provide notice in accordance with
§§ 577.5 or 577.6, in addition to complying with other sections of this part,
the manufacturer shall notify owners
that they may be eligible to receive reimbursement for the cost of obtaining
a pre-notification remedy of a problem
associated with a defect or noncompliance consistent with the manufacturer’s reimbursement plan submitted to
NHTSA pursuant to §§ 573.6(c)(8)(i) and
573.13 of this chapter.

§ 577.11
(b) The manufacturer’s notification
shall include a statement, following
the items required by § 577.5 or § 577.6,
that
(1) Refers to the possible eligibility
for reimbursement for the cost of repair or replacement; and
(2) Describes how a consumer may
obtain information about reimbursement from the manufacturer;
(c) The information referred to in
§ 577.11(b)(2) of this part shall be provided in one of the following ways:
(1) In an enclosure to the notification
under § 577.5 or § 577.6 that provides the
information described in § 577.11(d),
consistent with the manufacturer’s reimbursement plan; or
(2) Through a toll-free telephone
number (with TTY capability) identified in the notification that provides
the information described in § 577.11(d),
consistent with the manufacturer’s reimbursement plan.
(3) For notifications of defects or
noncompliances in item of motor vehicle equipment that are in a form other
than a letter to a specific owner or purchaser, if the manufacturer does not
otherwise maintain a toll-free telephone number for the use of consumers, the manufacturer may refer
claimants to a non-toll-free telephone
number (with TTY capability) if it also
specifies a mailing address at which
owners can obtain the relevant information regarding the manufacturer’s
reimbursement plan.
(d) The information to be provided
under paragraph (c) of this section
must:
(1) Identify the vehicle and/or equipment that is the subject of the recall
and the underlying problem;
(2) State that the manufacturer has a
program for reimbursing pre-notification remedies and identify the type of
remedy eligible for reimbursement;
(3) Identify any limits on the time
period in which the repair or replacement of the recalled vehicle or equipment must have occurred;
(4) Identify any restrictions on eligibility for reimbursement that the manufacturer is imposing (as limited by
§ 573.13 (d) of this chapter);
(5) Specify all necessary documentation that must be submitted to obtain
reimbursement;

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§ 577.12

49 CFR Ch. V (10–1–18 Edition)

(6) Explain how to submit a claim for
reimbursement of a pre-notification
remedy; and
(7) Identify the office and address of
the manufacturer where a claim can be
submitted by mail and any authorized
dealers or facilities where a claimant
may submit a claim for reimbursement.
(e) The manufacturer is not required
to provide notification regarding reimbursement under this section if NHTSA
finds, based upon a written request by
a manufacturer accompanied by supporting information, views, and arguments, that all covered vehicles are
under warranty or that no person
would be eligible for reimbursement
under § 573.13 of this chapter.
[67 FR 64065, Oct. 17, 2002]

jstallworth on DSKBBY8HB2PROD with CFR

§ 577.12 Notification pursuant to an accelerated remedy program.
(a) When the Administrator requires
a manufacturer to accelerate its remedy program under § 573.14 of this chapter, or when a manufacturer agrees
with a request from the Administrator
that it accelerate its remedy program
in advance of being required to do so,
in addition to complying with other
sections of this part, the manufacturer
shall provide notification in accordance with this section.
(b) Except as provided elsewhere in
this section or when the Administrator
determines otherwise, the notification
under this section shall be sent to the
same recipients as provided by § 577.7. If
no notification has been provided to
owners pursuant to this part, the provisions required by this section may be
combined with the notification under
§§ 577.5 or 577.6. A manufacturer need
only provide a notification under this
section to owners of vehicles or items
of equipment for which the defect or
noncompliance has not been remedied.
(c) The manufacturer’s notification
shall include the following:
(1) If there was a prior notification, a
statement that identifies that notification and states that this notification
supplements it;
(2) When the accelerated remedy program has been required by the Administrator, a statement that the National
Highway Traffic Safety Administration

has required the manufacturer to accelerate its remedy program;
(3) A statement of how the program
has been accelerated (e.g., by expanding the sources of replacement parts
and/or expanding the number of authorized repair facilities);
(4) Where applicable, a statement
that the owner may elect to obtain the
recall remedy using designated service
facilities other than those that are
owned or franchised by the manufacturer or are the manufacturer’s authorized dealers, and an explanation of how
the owner may arrange for service at
those other facilities;
(5) Where applicable, a statement
that the owner may elect to obtain the
recall remedy using specified replacement parts or equipment from sources
other than the manufacturer;
(6) Where applicable, a statement indicating whether the owner will be required to pay an alternative facility
and/or parts supplier, subject to reimbursement by the manufacturer; and
(7) If an owner will be required to pay
an alternative facility and/or parts supplier, a statement that the owner will
be eligible to have those expenditures
reimbursed by the manufacturer, and a
description of how a consumer may obtain information about reimbursement
from the manufacturer consistent with
§ 577.11(b)(2), (c) and (d).
[67 FR 72393, Dec. 5, 2002]

§ 577.13 Notification
distributors.

to

dealers

(a) The notification to dealers and
distributors of a safety-related defect
or a noncompliance with a Federal
motor vehicle safety standard shall
contain a clear statement that identifies the notification as being a safety
recall notice, an identification of the
motor vehicles or items of motor vehicle equipment covered by the recall, a
description of the defect or noncompliance, and a brief evaluation of the risk
to motor vehicle safety related to the
defect or noncompliance. The notification shall also include a complete description of the recall remedy, and the
estimated date on which the remedy
will be available. Information required
by this paragraph that is not available
at the time of the original notification

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Nat’l Highway Traffic Safety Admin., DOT
shall be provided as it becomes available.
(b) The notification shall also include
an advisory stating that it is a violation of Federal law for a dealer to deliver a new motor vehicle or any new
or used item of motor vehicle equipment (including a tire) covered by the
notification under a sale or lease until
the defect or noncompliance is remedied.
(c) The manufacturer shall, upon request of the Administrator, demonstrate that it sent the required notification to each of its known dealers
and distributors and the date of such
notification.
[69 FR 34960, June 23, 2004, as amended at 70
FR 38815, July 6, 2005]

jstallworth on DSKBBY8HB2PROD with CFR

§ 577.14 Labeling for owner notification letter envelope.
(a) Purpose and scope—The purpose of
this section is to supply vehicle and
equipment manufacturers, including
manufacturers of tires and child safety
seats, with the label required to be
shown on the envelopes of safety recall
notification letters mailed to owners
pursuant to § 577.5. This label shall not
be used for any purpose other than
compliance with § 577.5 by any entity
outside of the Department of Transportation.
(b) Required label information and format. (1) The label depicted in this sec-

§ 577.14
tion must be printed on the front of the
safety recall owner notification envelope. The content, format, and sequence of this label are depicted in Figure 1 of this section. A Spanish version
of this label, for owners located in the
Commonwealth of Puerto Rico or the
Canal Zone, can be found in Figure 2 of
this section.
(2) The text ‘‘IMPORTANT SAFETY
RECALL INFORMATION’’ must be
printed in capital letters, have a minimum font size of 10 point, and be
printed in white text on a red background. Also, this text must be centered horizontally and located near the
top of the label. The text ‘‘Issued in
Accordance With Federal Law’’ must
have a minimum font size of 10 point,
be printed in black text on a white
background, and be located directly beneath the preceding text, also centered
horizontally within the label.
(3) The logo of the U.S. Department
of Transportation must be located at
the bottom, left-hand corner of the
label. The logo of the National Highway Traffic Safety Administration
must be located at the bottom, righthand corner of the label. Each logo
should be printed in black color with a
white background.
(c) Required label size—The label depicted in this paragraph must be 1 inch
in height and 3 inches in length.

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Pt. 578

49 CFR Ch. V (10–1–18 Edition)

[79 FR 43678, July 28, 2014]

PART 578—CIVIL AND CRIMINAL
PENALTIES
Sec.
578.1 Scope.
578.2 Purpose.
578.3 Applicability.
578.4 Definitions.
578.5 Inflationary adjustment of civil penalties.
578.6 Civil penalties for violations of specified provisions of Title 49 of the United
States Code.
578.7 Criminal safe harbor provision.
578.8 Civil penalty factors under 49 U.S.C.
Chapter 301.
AUTHORITY: Pub. L. 101–410, Pub. L. 104–134,
Pub. L. 109–59, Pub. L. 114–74, Pub. L. 114–94,
49 U.S.C. 30165, 30170, 30505, 32308, 32309, 32507,
32709, 32710, 32902, 32912, and 33115; delegation
of authority at 49 CFR 1.81, 1.95.

§ 578.1

Scope

This part specifies the civil penalties
for violations of statutes and regulations administered by the National

[81 FR 10527, Mar. 1, 2016]

§ 578.2

Purpose.

One purpose of this part is to effectuate the remedial impact of civil penalties and to foster compliance with
the law by specifying the civil penalties for statutory and regulatory violations, as adjusted for inflation. Another purpose of this part is to set
forth NHTSA’s interpretation of the
civil penalty factors listed in 49 U.S.C.
30165(c). A third purpose of this part is
to set forth the requirements regarding
the reasonable time and the manner of
correction for a person seeking safe

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jstallworth on DSKBBY8HB2PROD with CFR

SOURCE: 62 FR 5169, Feb. 4, 1997, unless otherwise noted.

Highway Traffic Safety Administration
(NHTSA), as adjusted for inflation.
This part also sets forth NHTSA’s interpretation of the civil penalty factors
listed in 49 U.S.C. 30165(c). In addition,
this part sets forth the requirements
regarding the reasonable time and the
manner of correction for a person seeking safe harbor protection from criminal liability under 49 U.S.C. 30170(a).