06
March
2025

What You Don't Know CAN Hurt You...

Compliance is essential for protecting consumers and dealerships amid increasing regulatory scrutiny. The FTC and CFPB are targeting smaller dealers, making understanding key regulations crucial. Knowledge of rules like the Used Car Rule is vital for safeguarding your business.

What You Don't Know CAN Hurt You...

“Compliance” is not just a buzz word used by a cottage industry trying to grab their share of your hard-earned profits, or an industry association trying to scare you into classes and operational reviews.

Yes, we were all extremely relieved when the U.S Fifth Circuit Court of Appeals vacated the “CARS (Combatting Auto Retail Scams) Rule” on January 27th. Though that judgement took quite a bit of the additional overreach out of the equation – make no mistake, the FTC and CFPB are still pursuing investigations and enforcement actions. The more recent focus has appeared to have been on smaller dealerships with less perceived knowledge of how compliance affects them and less ability to fight back when fines are levied.

The Federal Trade Commission (FTC) and Consumer Fraud Protection Bureau (CFPB) were created in the best spirit and intent – to protect consumers. We all know there are predators in our industry. The honest dealers who want to do things right want them censured as much as the Federal agencies created to do so.

Recent administrations have unfortunately weaponized these well-intentioned agencies against the small businesses that this country relies on - YOU. At this point, though we are all hopeful for a burgeoning economic resurgence, we need to remain diligent to protect not just the interests of the small independent dealership, but of the over 12MM consumers out there who work hard and need the goods and services you offer.

There are many agencies of varying expense that exist to help educate your staff and review your current compliance for items that need to be addressed – one of the best is Ignite Consulting Partners, with whom MidAtlantic IADA has a close working relationship.

In your own State (or Commonwealth), agencies have been granted similar Ruleauditing powers to protect consumers from predators. Sadly, years of misrepresentation have these local agencies equally on guard when it comes to consumer protection. Each of these agencies has their own standards by which to audit – please familiarize yourself with those standards and those who can help you maintain those standards.

In years past, good dealers “doing right” by the customer had nothing to worry about with compliance – this is no longer the case. You can absolutely lose everything for simply not knowing what you don’t know.

Please take steps to protect yourself, your employees and your legacy. We’re here to help.

If you are not familiar with how the following FTC & CFPB Rules affect your daily business, please reach out for more information and how we can help protect your investment:

  • Used Car Rule
  • Magnuson-Moss Warranty Ac
  • Disposal Rule
  • Truth In Lending Act
  • Equal Credit Opportunity Act
  • Gramm-Leach-Bliley Act
  • Truth in Advertising Rule

Compliance Review by MidAtlantic IADA: ONSITE PennDOT Compliance Review

  • Starting at $250 for initial setup of a compliant file management system for new dealerships.
  • Average small dealership review: $500 (half-day) to $900 (full day) for assistance and education on management.
  • Multi-day or multi-location pricing varies based on complexity and local accommodation costs.

CALL (717) 238-9002

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