Under U.S. federal law, odometer laws protect consumers by requiring vehicles to display accurate mileage, making odometer fraud a serious offense under Title 49 U.S. Code 32703.

Vehicles with lower mileage generally command higher prices at used-car lots. However, altering an odometer to reduce or change the displayed mileage is a federal offense.

Odometer fraud carries significant legal risks for consumers and the industry, often leading to costly repairs and potential criminal charges. This law safeguards consumers from dishonest sellers who alter odometer readings to increase the value of used vehicles. 

What Does Section 32703 Say?

49 U.S.C. 32703, preventing tampering, says, "A person may not (1) advertise for sale, sell, use, install, or have installed a device that makes an odometer of a motor vehicle register a mileage different from the mileage the vehicle was driven, as registered by the odometer within the designed tolerance of the manufacturer of the odometer;

(2) disconnect, reset, alter, or have disconnected, reset, or altered an odometer of a motor vehicle, intending to change the mileage registered by the odometer;

(3) with intent to defraud, operate a motor vehicle on a street, road, or highway if the person knows that the odometer of the vehicle is disconnected or not operating; or (4) conspire to violate this section or section 32704 or 32705 of this title."

Key Takeaways

• Conspiring to tamper with an odometer is punishable under 49 U.S.C. 32703, even if the tampering is not completed, emphasizing the legal risks for professionals.
• Penalties under this law can add up. This means you could face a separate fine for each case of odometer tampering. For example, if you tamper with odometers on 20 cars, you could be fined 20 times.
• Notably, individuals who change or roll back odometers often also forge titles and other documents that include mileage details for the vehicle. Making false claims about a vehicle's mileage is a distinct offense under federal law and is frequently prosecuted alongside odometer tampering.

What Acts are Prohibited?

Title 49 U.S.C. 32703 explicitly prohibits acts such as installing, using, or selling devices that alter odometer readings, making such actions federal offenses.

• Install, use, sell, or promote any device designed to alter a vehicle's odometer reading away from the actual miles driven.
• Disconnect, reset, or modify an odometer with the intent to change the recorded mileage; or
• Knowingly operate a motor vehicle while the odometer is disconnected or not working, with the intent of committing fraud.

What Are the Associated Offenses?

49 U.S. Code Chapter 327 Odometers contains several federal laws addressing 49 U.S.C. 32703, which prohibits tampering, including the following:

• 49 U.S.C. 32701 - Findings and purposes
• 49 U.S.C. 32702 - Definitions
• 49 U.S.C. 32704 - Service, repair, and replacement
• 49 U.S.C. 32705 - Disclosure requirements on transfer of motor vehicles
• 49 U.S.C. 32706 - Inspections, investigations, and records
• 49 U.S.C. 32707 - Administrative warrants
• 49 U.S.C. 32708 - Confidentiality of information
• 49 U.S.C. 32709 - Penalties and enforcement
• 49 U.S.C. 32710 - Civil actions by private person;
• 49 U.S.C. 32711 - Relationship to state law

Penalties for Tampering with Odometers

The penalties for violating Title 49 U.S. Code 32703 and related odometer violations are specified in 49 U.S.C. 32709. These strict measures emphasize how seriously the federal government views odometer fraud:

• Civil Penalties: If convicted of tampering with an odometer, you could face fines of up to $10,000 per vehicle with an altered odometer, with a total maximum penalty of $1 million. If a corporation is involved, its officers may also be fined personally, alongside the corporation. Moreover, there could be additional lawsuits from the Attorney General and the state where the fraud occurred.
• Criminal Penalties: If convicted of odometer tampering, you may also face fines up to $250,000 (in addition to civil penalties) and a prison sentence of up to 3 years.

What Are the Defenses to 49 U.S.C. 32703?

If you're facing charges under 49 U.S.C. 32703 for odometer tampering, a skilled federal criminal defense lawyer might use various strategies to challenge these allegations, as explained below.

It could be argued that there was no intent to defraud. Prosecutors need to demonstrate willful intent to secure a conviction. If your lawyer can prove that you lacked this intent, the charges might be dropped.

For instance, the odometer was changed during a repair, and you supplied the buyer with documentation showing the original mileage.

Perhaps we could claim it was an innocent mistake. Your attorney might suggest that the odometer discrepancy resulted from an honest error, like a mechanical fault, rather than an intentional effort to deceive.

You could say the discrepancy was unintentional. Your attorney might contend that the odometer reading variation resulted from genuine reasons, like tire replacement or mechanical problems, rather than deliberate tampering.

Feel free to reach out for a case review by phone or through our contact form. The Hedding Law Firm is located in Los Angeles, CA.