I just got my car last week so i am not too familiar with all the gizmos. The booklet said it is used to fold the seats down, however it did not do anything when i pulled the latch up. The side handle work fine though. 
the "walk-in control cable" that connects the latch to the seat mechanism may be not be connected. it should be a simple fix if you are mechanically inclined. lift the latch. the cable should be attached. if not, use some pliers to attach it.
if that does not work, take it to your dealership and get it fixed.
if that does not work, take it to your dealership and get it fixed.
