Compliance Hotline

We're shifting gears away from the Safeguards Rule and talking about the Red Flags Rule and what to do when you encounter a customer that presents with one or multiple red flags.

In the second part of this series, we're focusing on the FTC action against a Washington, D.C. dealership group that allegedly used deceptive advertising and discriminatory actions. There are lessons we can all take away from this lawsuit.

In the first of this two-part series, Robert explores DMV and BAR activities and has some helpful reminders for dealers on proper compliance procedures.

There are several new laws and regulations in California that may impact dealer operations in 2023.

The Federal Trade Commission announced it is extending the deadline to comply with the Safeguards Rule requirements from December 9, 2022 to June 9, 2023. Here is what you need to know.

We're shifting gears from the proposed FTC Motor Vehicle Dealers Trade Regulation Rule to a couple of new bills that were recently signed into law in California. Assembly Bill 2311 and Senate Bill 1311 will take effect January 1, 2023 and will impact the way dealers sell GAP in California going forward. 

On September 12, the comment period ended for the Proposed Motor Vehicle Dealers Trade Regulation Rule. More than 26,000 comments were submitted and we're summarizing a handful of significant comments here.

The new law creates a tax credit for electric vehicles (EVs) but creates a problem for dealers as the changeover occurs from current tax credit policies to the new IRA EV provisions.

Some changes have been made to the LAW 553 Retail Installment Sale Contract that are already impacting your captive lenders. Although the updates are minor, they will require some reprogramming and I advise you to start looking into the changes you'll need to make now.

The FTC has proposed a new rule, the “Motor Vehicle Dealers Trade Regulation Rule,” which will affect dealers nationwide. It seeks to create a set of guidelines to “protect consumers and honest dealers by making the car-buying process more clear and competitive.”

Let's set the record straight about this “three-day cancellation right,” and there is probably no need to panic so long as you follow the recommended steps.

In an attempt to cope with dwindling inventory, dealers have needed to come up with new ways to stay afloat. Consequently, we have heard of some finance personnel soliciting car purchasers with offers to “lower your current interest rate and monthly payment” by refinancing. Let's set the record straight on this idea.

An Illinois dealer group allegedly discriminated against Black customers by charging them more for financing and allegedly slipped unwanted add-ons to customers’ bills.

Let's talk about the recent actions the Federal Trade Commission has taken against a recent telemarketing campaign for "extended warranties" and an automotive marketing services company that used deceptive advertising. Here are some lessons learned.

Titling issues have been popping up on the Hotline more, so let's talk about selling a used vehicle without a physical title, the new DMV memorandum, and then get into the logistics of when the dealer must have a physical title.

We've rounded up the new laws and regulations that may impact dealer operations in 2022 and provided a summary, degree of impact, and anticipated effective dates.

As 2021 draws to a close, I'm reflecting on the year and the most frequent topics during its course. Let's reflect on what obligations a dealer has when it provides its own warranty on a used vehicle.

An update from the Federal Trade Commission expands the cybersecurity requirements that financial institutions must implement, including dealerships that issue credit and lease terms. Here's what you need to know.

Supplemental price stickers have become commonplace during the COVID-19 pandemic and subsequent chip shortage. The Hotline has been buzzing with questions, so we've put together an FAQ.

What do you do when a customer wants to be a car for somebody else? There's some confusion on what to do depending on the deal type, let's clear that up.

The proper procedures for rewriting contracts is a topic that comes up a lot on the Hotline. Let's revisit the more important aspects of the rewrite process.

For the last few years, we've been tracking a Federal Trade Commission case against an auto group in Arizona and New Mexico. Recently the FTC reached a settlement with the owner/manager and we're covering what you need to know about it.

Let's talk refunds. Specifically, whether a refund is required and whether the refund is paid to the customer or the lender.

The tire chain disclosure requirement is confusing and frustrating, so we're taking some time to cover the more common missteps that occur during a disclosure.

Recently, we heard from several dealers that they have been tagged by the IRS for audits on Form 8300 compliance. While most of you know about the IRS/FinCEN Form 8300, we're covering a quick refresher.

What are your desking practices? They can differ widely throughout the industry but usually include quoting payments. Let's break down quoting ranges and why it isn't a best practice.

With Memorial Day around the corner and thinking about our troops, we're answering some common Hotline questions we receive about active-duty and non-resident military members.

We're covering the Hotline's most frequently asked questions about sales and recalls.

The Department of Homeland Security and the California DMV has made some recent changes to tax rates and REAL ID enforcement that will impact your dealership.

The DMV issued updated guidance clarifying online sales and off-site deliveries of vehicles.

Tax season seems to bring an uptick in Hotline calls about customers with different sales tax exemptions. Let's dispel some of the more common sales tax exemption myths that we regularly come across.

It's time to battle an age-old foe in the industry: customer complaints regarding purported undisclosed prior accident damage. How can we prevent this from happening?

A customer has a trade-in but they want to retain some equity from the trade. How do you disclose the arrangement and negative trade equity on the contract?

What do you do when another dealer (who doesn't have your franchise) wants to purchase a new vehicle from you and insists they don't have to pay sales tax?

New California laws and regulations that may impact dealer operations in 2021.

We review a dealer's cancellation rights and provides information on what can be done after the 10-day rescission period has expired.

When we're stressed we make simple mistakes. Robert Ebin reminds us of the most common mistakes and some best practices for safeguarding your vehicles.

We've rounded up the latest changes from the California DMV that you need to know.

The Hotline has seen an uptick in calls about trade-in vehicles. We've pulled together a review of best practices of trade-ins.

"Is this a new or used vehicle?" A simple question with a sometimes not so simple answer that could have dire consequences.

An FTC complaint we covered a few years ago has recently settled. We're reviewing what happened, the settlement, and lessons learned for your dealership.

We're reviewing the most frequently asked questions about demo vehicles, everything from when a vehicle is placed into demonstrator service, and then taken out and offered for sale.

A couple months ago, we covered the FTC's action against a marketing firm's advertising tactics. They've back in the news again, so we've rounded up 10 tips you need to keep your ads compliant.

With an ever-changing landscape, we're revisiting the topic of supplemental price sticker best practices, advertising issues, and their use with used vehicles.

Governor Newsom recently ordered the closure of certain businesses throughout California, are dealers affected?

Throughout the COVID-19 pandemic, we've consistently received questions about driver's licenses, specifically extensions to license expiration dates and vehicle delivery. We're answering all of those questions here.

As dealers try to find creative ways to increase inventory levels, we've started to see an increase in questions about the 7,500 Mile Rule. So, what is it? Why should you care?

The FTC has been taking legal action against COVID-19-related advertising schemes, including auto dealers and their ad firms. A recent case provides some key takeaways you need to know.

The Hotline has been getting several sales tax questions, so we're diving into some misconceptions that have come up during these calls.

After countless audits and deal jacket reviews, we always see the same mistakes. I'm breaking down the top DMS programming errors and dealership oversights from the last few years.

Despite a global pandemic, the Federal Trade Commission does not appear to be slowing down. It recently announced a $1.5 million settlement with a dealership and its general manager. We'll breakdown the case and lessons learned.

We broadly cover the DMV’s recent memorandum regarding online sales and remote deliveries as well as the status of in-person sales at dealerships in California.

As dealers respond to the changing regulations during this COVID-19 crisis, we can't forget other compliance issues that may seem minor in comparison. Check out our FAQs on autobrokers and salesperson licenses.

There's an open comment period for a proposed DMV rule amendment to the 18-Month Rule regarding record retention.

With various local orders to stay home, dealers have become increasingly curious about the prospect of salesperson-less test drives. This article discusses the laws and regulations surrounding this concept.

On March 31, 2020, 6 counties and 1 city announced stricter stay home orders but the new language allows for the online sales of vehicles.

With all these local and state-wide orders being issued, we wanted to briefly remind you of them, how they fit with each other, and what they mean for dealerships here in California.

As the nation tries to control the spread of this global pandemic, we need to remember that we are in this for each other.

Here are the not-so-straightforward answers to the most prevalent questions we’ve received on the legal hotline about recalls.

Effective February 28, 2020, the Department of Defense issued an amendment to its Interpretive Rule for the Military Lending Act. What does this mean for you?

The California Tire Fee seems straightforward but is more often mishandled. We have a quick review of the fee and how it should be charged correctly.

We’ve received several calls on the hotline informing us of a recent scam involving credit cards that dealers should aware of. We have some best practices to combat it.

Let’s make 2020 an exception and focus on compliance at your dealership. We've collected the most prevalent calls we received on hotline over the last year and distilled them into a short briefs and action items.

Effective January 1, 2020, the Department of Motor Vehicles (DMV) has made changes to three existing processes that you need to be aware of.

Rachelle Taylor Golden, an attorney with Hatmaker Law Group, provides tips on how to make your website accessible under the American Disabilities Act.