The regulatory landscape changes every year, so staying compliant with all of the laws and regulations that apply to your dealership can be a challenge. But if you don’t stay on top of it, you risk fines, penalties and damage to your business reputation.
Engaging qualified legal counsel is the best way to ensure full compliance, but here is a high-level peek at recent changes that you should know about:
Consumer Financial Protection Bureau (CFPB)
- The CFPB’s fair lending enforcement efforts apply mainly to buy-here-pay-here dealerships and some independent dealerships, but recent developments have expanded their oversight of certain auto dealer practices. Consult your legal counsel if you are unsure whether your dealership falls under their jurisdiction.
- The CFPB issued a Supervisory Highlights Report last summer that signaled that they would be turning their attention to investigating aftermarket product sales for possible unfair, deceptive, or abusive acts and practices (UDAAPs). The upshot is that consistency and transparency in aftermarket sales remain vital to compliance.
Federal Trade Commission (FTC)
- The FTC brings enforcement actions against dealers using its authority to prohibit unfair and deceptive acts and practices (UDAP). To remain compliant, dealerships should look at the fairness and transparency of their advertising and sales practices. The agency has issued guidelines on a variety of marketing topics, including online marketing disclosures, to help businesses avoid legal repercussions.
California Consumer Privacy Act (CCPA)
- If your dealership does business in California, you should familiarize yourself with the new California Consumer Privacy Act (CCPA) that regulates how a business can collect and use consumer personal information.
Want to learn more about what it takes to remain compliant in 2024? The 2024 Dealertrack Compliance Guide can serve as a useful resource on compliance issues throughout the year. Download the guide here.
