The Dealership Fixit Podcast Randy Felice of A&S Motorcycles talks Sales & Advertising Compliance - Episode 39
Randy joined me for the 3rd of 3 sessions discussing some intricate points that he, as a California dealership, is accountable for to state and federal regulatory agencies. This is a session that may have some of you who are not in a role where these compliance items are part of your day to day, let's say... it may have you sort of "glaze over!" But, if you aspire to be in a management role at a dealership or you are today, listen up - the level of onerousness that compliance has come to in some states (and likely many more/all over time) is high. If you plan to play in the sell fun powersports or RV business you'll want to bookmark the 3 Randy Felice episodes for a later reflection.
As mentioned at least once, Randy is not a lawyer. I also, am not a lawyer. We are having this discussion to show how immense the expectations are on you as a dealership, thru the perspective of a motorcycle dealership (Randy's) operating in California.
Randy has graciously offered up his email to answer questions directly about any of these topics:
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Some notes from the session:
A culture of compliance in the sales department
Advertising
https://www.paa.org/Files/NADAAdGuide.pdf
Use your manufacturers verbiage only for rates and payment
Nothing is "free" when required to purchase something ...it's "included"
Illegal lotteries
Properly advertising rebates
Bait and switch
Bird dogging
Certified pre-owned (CPO) should not look like or imply from manufacturer unless it is
Fuel economy claims
Pricing, fees
Hang tags
Sales Contract Law
Military lending act - no gap
OFAC Office of Foreign Assets Control
10,000 cash form
Liability insurance if required in your state.
Privacy notice
Statement of how a vehicle left your property, if no license
How you state license and registration
Offering all back end products to all customers
Customer incentive acknowledgement
Correct application of rebates
Having a rate participation procedure so that there is no discrimination in how you mark up
rate nada process https://www.nada.org/faircredit/
Accept application from anyone who wants to apply
Adverse action form if turned down or not rate expecting.
Out of state sales license and sales tax
Customer information security
Recently dealership in CA was fined over 100,000
$3500 per sheet of paper left out, income, drivers license, social... just to be careful protect everything.
Lock up servers
Screen savers with passwords
Do not write down credit card info
Safes near desks
sales deals locked up,
need to know access,
password security,
drop box or fax machine secure information transfer, careful use of email
Random desk inspections
Red flag laws... identity theft purchasing bikes
The ITPP Compliance Officer is responsible for and has been assigned specific responsibility
for oversight, development, implementation, administration, and approval of material changes to
the Dealership’s Identity Theft Prevention Program (“ITPP”)
Credit applications through secure source, do not fill for the customer, must have DL before submitting.
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