Understanding the nuances of compliance in the dynamic world of advertising sales and finance is crucial for dealerships. It’s about ensuring that both the spirit and the letter of regulations are followed, safeguarding the dealership’s integrity and that of its customers. Today, we’re delving into a pivotal step in achieving this compliance – Step 4 of the 10 Steps to Advertising, Sales, and Finance Compliance for Dealers: Implementing comprehensive written plans, programs, and policies.
Dealership Compliance Can’t Exist in Theory Alone
At the heart of Step 4 is the premise that an effective compliance program cannot simply exist in theory; it must be documented and articulated in a manner that is both accessible and understandable to all employees within the dealership. This involves taking stock of existing materials, which may include outdated manuals or policies that have been left untouched and gathering dust. The goal is not to discard these efforts but to review, refine, and revitalize them to meet current standards and expectations.
Crafting Clear and Comprehensive Written Plans, Programs, and Policies
Creating or updating your dealership’s compliance documents is more than an administrative task; it’s an opportunity to bridge the gap between regulatory requirements and daily operations. This process starts with thoroughly reviewing your current policies to identify gaps or areas needing improvement.
Once these gaps are identified, the next step involves developing new or updated programs, plans, and policies that address these gaps and align with the latest industry regulations and best practices. The focus should be on clarity, ensuring that each document clearly outlines the dealership’s expectations, procedures, and rationale.
Beyond The Shelf: Bringing Advertising, Sales and Finance Policies To Life
However, the real test of these policies lies in their implementation and communication. Simply developing these documents and filing them away misses the mark. The true value comes when these documents are fully integrated into the dealership’s culture through active and engaging staff training programs.
And…what do you know?!? We wrote an article covering this topic!
Training should be designed to provide employees with a solid understanding of the plans and programs, emphasizing their role in maintaining compliance and the importance of their adherence to these policies. This step enhances staff transparency and fosters a culture of compliance and ethical business practices.
Is Your Advertising in Compliance with FTC Regulations? Find out with this Dealership Advertising Cheat Sheet.
Building a solid foundation of written documents that capture the essence of your dealership’s commitment to advertising, sales, and finance compliance.
This step, however, is just the beginning. The real success lies in bringing these documents to life through continuous education, training, and adherence, ensuring every employee understands their role in maintaining compliance. As dealerships navigate the complexities of regulatory requirements, remembering the importance of clear, comprehensive, and actively utilized compliance documentation can make all the difference.
KPA helps dealers limit liability from the first contact to deal close.
KPA’s complete compliance solution for Advertising, Sales, and Finance includes a 32-point risk assessment to help you comply with regulations and protect your dealership from unnecessary risk.
Let us help you keep compliance simple.
Next week let’s look at issues and action items.
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