It is essential for automotive dealerships to stay compliant with the regulations set by the CFPB, Department of Justice (DOJ), state regulatory agencies, and Federal Trade Commission (FTC). To assist your organization in minimizing liability, Impact Revenue has developed these Best Practice Guidelines for Aftermarket Products.
These guidelines are intended to be a general overview and not a substitute for legal counsel. It is highly recommended to review these Best Practices with legal counsel to determine which should be implemented as an organization.
The Best Practice Guidelines emphasize four general themes: no discrimination, no price gouging, full disclosure to the consumer, and providing value to the consumer.
- Dealers must ensure they only advertise, market and offer products using approved materials and forms. Impact must approve any marketing materials used on the dealership website or via their own materials.
- A no-pressure point of sale philosophy must be implemented.
- Sellers should only inform the consumer of the products available based on their needs and eligibility.
- Do not sell ineligible or unnecessary products.
- Full disclosure must be provided to the consumer.
- The consumer should be given the opportunity to review, read, and consider all forms, and terms and conditions before signing any contract.
- It is also recommended that the consumer receives a copy of the actual contract, which includes the terms and conditions, prior to sale for review.
- Dealers should not misrepresent, add, remove, or otherwise modify the terms and conditions of any product or contract.
- They must also hold the proper license(s) to sell the products.
- Egregious mark ups and differentiated pricing is prohibited on aftermarket products.
- Discrimination or disparate treatment of any consumer in the offer or sale of any product based on a consumer’s age, gender, sexual orientation, nationality, disability, or any other personal characteristic is also prohibited.
- Finally, dealers must facilitate cancellation, where applicable, at customer, lender or administrator request and will not delay funding or provide any push back whatsoever to the consumer trying to cancel the contract.
Following the above Best Practice Guidelines will help ensure your dealership is compliant with the regulations set by the CFPB, Department of Justice (DOJ), state regulatory agencies, and Federal Trade Commission (FTC).
These guidelines are intended as a general summary and are not intended to replace legal counsel. It is highly recommended that you review these Best Practices with your legal counsel and determine the Best Practices your organization should implement. If you have any questions on these Best Practice Guidelines please contact Impact Revenue.
