I hope this message finds you well. I’m reaching out as someone deeply invested in the success and well-being of our industry to share some urgent updates on the regulatory landscape and how we can work together to ensure your dealership stays protected.[/vc_column_text][vc_column_text hide_on_states=”tablets,mobiles”]Dear Valued Dealer,
I hope this message finds you well. I’m reaching out as someone deeply invested in the success and well-being of our industry to share some urgent updates on the regulatory landscape and how we can work together to ensure your dealership stays protected.
Escalating Compliance Enforcement
The compliance environment for dealerships is not just changing—it’s becoming more challenging than ever. Not only are you expected to meet world-class privacy and cybersecurity standards, the FTC and state attorneys general have significantly intensified their scrutiny of dealership practices, particularly in areas like sales, F&I processes, and advertising standards. This increased focus has already led to a sharp rise in enforcement actions, with some dealerships facing substantial fines for issues such as deceptive advertising and add-on product practices. Moreover, there is a growing trend where general managers and owners are being named and held personally liable for compliance violations at their dealerships.[/vc_column_text][/vc_column][vc_column width=”1/2″][vc_column_text hide_on_states=”default,laptops”]
[/vc_column_text][vc_column_text hide_on_states=”tablets,mobiles”] [/vc_column_text][vc_column_text css=”%7B%22default%22%3A%7B%22padding-top%22%3A%2210px%22%7D%7D”]View a special message from CEO, Chris Cleveland.
[/vc_column_text][/vc_column][/vc_row][vc_row height=”auto” css=”%7B%22default%22%3A%7B%22margin-top%22%3A%22-4%25%22%7D%7D”][vc_column link=”%7B%22url%22%3A%22%22%7D” width=”1/1″][vc_column_text hide_on_states=”default,laptops”]Escalating Compliance Enforcement
The compliance environment for dealerships is not just changing—it’s becoming more challenging than ever. Not only are you expected to meet world-class privacy and cybersecurity standards, the FTC and state attorneys general have significantly intensified their scrutiny of dealership practices, particularly in areas like sales, F&I processes, and advertising standards. This increased focus has already led to a sharp rise in enforcement actions, with some dealerships facing substantial fines for issues such as deceptive advertising and add-on product practices. Moreover, there is a growing trend where general managers and owners are being named and held personally liable for compliance violations at their dealerships.
To give you a clearer picture of the current landscape, here is a summary of recent enforcement actions across various states (most of which occurred in just the last few months):[/vc_column_text][vc_column_text hide_on_states=”tablets,mobiles”]To give you a clearer picture of the current landscape, here is a summary of recent enforcement actions across various states (most of which occurred in just the last few months):[/vc_column_text][vc_column_text css=”%7B%22default%22%3A%7B%22padding-top%22%3A%2210px%22%7D%7D”]
| Dealer | Agency | Fine Amount | Categories of Issues Enforced |
| Pennsylvania Dealership | State AG | $64,000+ | Fraud, failure to provide paperwork |
| Ohio Dealership | State AG | $300,000+ | Deceptive sales & advertising practices, titling issues |
| Rhode Island Dealership | State AG | $1 million+ | Deceptive sales & advertising practices |
| Maryland Dealership | State AG | $10,000 per car | Deceptive sales & advertising practices |
| Kansas Dealership | State AG | $159,000 | Deceptive sales & advertising practices |
| Minnesota Dealership | State AG | Not specified | Deceptive sales & advertising practices |
| Indiana Dealership | State AG | $500,000 | Deceptive sales & advertising practices |
| New York Dealership | State AG | Not specified | Deceptive sales & advertising practices |
| Arizona Dealership | State AG | $60,000 | Deceptive sales & advertising practices |
| Rhode Island Dealership | State AG | $1 million+ | Deceptive sales & advertising practices, add-ons |
| Multi-state Auto Group | FTC | Not specified | Deceptive sales & advertising practices |
| Arizona Dealership | FTC & State AG | $2.6 million | Deceptive sales & advertising practices, discriminatory practices, junk fees |
| Multi-state Online Automotive Retailer | FTC | $1 million+ | Deceptive sales & advertising practices |
| Connecticut Dealership | FTC & State AG | Not specified | Deceptive sales & advertising practices, add-ons |
| Wisconsin Dealership | FTC & State AG | $1.1 million | Add-ons, discriminatory practices |
| Multi-state Auto Group | FTC | $3.3 million | Add-ons, discriminatory practices |
| Multi-state Auto Group | FTC | $9.8 million | Add-ons, discriminatory practices |
We are proud to work with dealers and know that they want to do the right thing. We highlight these actions not to vilify the unfortunate dealers involved (who often are squeezed into settling unproven allegations), but to make all dealers aware of the growing threat.
Why This Matters
This massive uptick in enforcement is just part of an unprecedented summer of challenges for dealers that has included macroeconomic headwinds, political uncertainty, the CDK incident, and an avalanche of wiretapping lawsuits in the auto retail space…not to mention the impending heavy hand of the CARS Rule.
At ComplyAuto, our mission has always been to support dealers like you by providing the tools, information, and expertise needed to navigate these challenges effectively. When my co-founder Shane McCallan and I started ComplyAuto, we drew heavily on our own experiences in legal and regulatory compliance within our own dealership groups. I was at a dealership for more than a decade and saw firsthand how complex and overwhelming these issues can be – we wanted to create solutions that truly make a difference.
This commitment to the industry is reflected in the fact that 40 out of 50 state dealer associations recommend ComplyAuto for regulatory compliance. We’ve built a team that includes more dealer attorneys and former dealer executives than any other provider, including the former Chief Regulatory Counsel at NADA. Simply put, expertise matters, and ComplyAuto’s is unrivaled.
Protecting Your Dealership
We’ve been fortunate to see significant growth over the past few years, with nearly 10,000 dealers across all 50 states now relying on ComplyAuto. Thank you.
Our primary focus has always been to help dealers, period. And I’m proud to say that not a single one of our dealers has faced a state or federal enforcement action related to privacy or cybersecurity compliance. Add that to the exciting growth in our dealer Safety/OSHA compliance products and we are truly a one-stop shop for dealership compliance.
Our mission is now to bring that same level of compliance and protection to you in the advertising and F&I arena.
Introducing Guardian: Our New F&I and Advertising Compliance Initiative
In light of these escalating challenges, I want to highlight our latest initiative: Guardian. This is not just another tool—Guardian is the most advanced F&I and advertising compliance product available today. It’s specifically designed to help you stay ahead of regulatory scrutiny by automatically scanning your website for both state and federal advertising issues in real-time. Further, our new cutting-edge deal jacket auditing tool is capable of reviewing every transaction to identify potential compliance violations, including the issues being targeted by state and federal regulators. It’s a comprehensive solution that allows you to proactively identify and address compliance and business concerns before they become costly problems.
Consider Consolidating Compliance with ComplyAuto
I’m reaching out because I care about the success of your dealership and the broader industry. Whether you’re already working with us or just considering your options, my goal is to ensure you have the information and support you need to protect your business.
ComplyAuto offers unmatched tools to help you identify and remediate issues automatically, covering everything from environmental health and safety to HR compliance, privacy, cybersecurity, service and repairs, and F&I and advertising compliance. I encourage you to consider consolidating your compliance functions with ComplyAuto. Our bundled pricing options are increasingly popular, and can simplify your operations while offering significant cost savings and comprehensive protection across all areas of your business. ComplyAuto is truly now the complete compliance platform for dealers.
Please don’t hesitate to reach out if you’d like to discuss how these changes might impact your dealership specifically, or if you have any questions about how we can help.
Sincerely,
Chris Cleveland
CEO, ComplyAuto[/vc_column_text][/vc_column][/vc_row]