Dealership Advisor

Legal news and trends affecting the auto dealership industry

Oct 12, 2017

Proposed Legislation Targets Sales of Cars with Open Recalls

CarMax, the largest U.S. used car retailer, is continuing to find itself in hot water for selling vehicles with open recalls. Most recently,  the Consumers for Auto Reliability and Safety (CARS) Foundation led a study that found one in four cars sold by CarMax had open safety recalls, including significant safety issues like defective airbags. [...]

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Jun 19, 2017

Dealer Receives 5 Million Reasons to Comply with Consumer Protection Regulations

In a recent consent order with the Florida Attorney General’s office, a Jacksonville car dealer will waive approximately $5 million dollars in consumer debt.  The case may serve as a window into practices that regulators will be increasingly targeting. The dealer in this case installed GPS devices without consumer knowledge or consent to track and [...]

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May 26, 2017

New Law Brings Improvements to Ohio’s Unclaimed Vehicle Affidavit Process

As of April 4th, 2017, HB 341 has taken effect to provide an easier affidavit process for repair shops attempting to obtain title to an unclaimed vehicle. The changes expand the scope of the unclaimed vehicle title law and should lower costs for this action. Although the process for obtaining a title remains unchanged, the [...]

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May 01, 2017

NY Attorney General Cracks Down on Undisclosed Safety Recalls

Following on the heels of the FTC’s 2016 administrative decisions requiring dealers who claim their used cars are “certified pre-owned” to have all safety recalls repaired or clearly disclose qualifying information related to open safety recalls, the New York Attorney General recently announced settlements with 104 dealers it identified as selling vehicles with undisclosed open [...]

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Jan 26, 2017

Open Safety Recalls on Certified Pre-Owned Cars: Disclosure is the Key

The Federal Trade Commission wanted to “send a signal” to auto dealers : if you sell a used car as “certified pre-owned” or tell a buyer that it is otherwise safe, you must disclose clearly and conspicuously all material information regarding open safety recalls.  Does that mean that a dealer can’t sell a car with [...]

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Nov 10, 2016

FTC Changes Used Car Buyer’s Guide

Following a public notice and comment period that began at the end of 2012, the Federal Trade Commission (“FTC”) released its final ruling updating the Buyer’s Guide, an offshoot of the FTC’s Used Car Rule (16 C.F.R. pt. 455).  The Buyer’s Guide must be provided to consumers by automotive dealerships that sell used motor vehicles.  The changes will [...]

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Feb 05, 2016

Car Dealers Settle with FTC for Falsely Advertising Safety of Used Cars

The Federal Trade Commission recently issued administrative complaints against three large car dealers, General Motors Company, Jim Koons Management, and Lithia Motors Inc., for advertising the safety of their used cars, yet failing to disclose that there were unrepaired safety recalls on some of the vehicles. Each of the dealers has now separately settled with [...]

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