Can someone direct me to a resource that tells which states do or do not allow a vendor to charge per lead?
Pay Per Lead
- Thread starter Dave Clark1
- Start date
- May 1, 2006
- 3,636
- 2,582
- Awards
- 13
- First Name
- Alex
It would be great to get a listing of all the states that have regulations around bird dogging. I know Virginia is one such state and a couple of Google searches for "Bird Dog Law" reveals some others.
ZAG.com and Birddogging - From the Virginia Motor Vehicle Dealer Board
State Laws and True Car - Forums | DrivingSales
I think a lot of this can be found through Google, but it might require a lawyer to get it all together officially.
ZAG.com and Birddogging - From the Virginia Motor Vehicle Dealer Board
State Laws and True Car - Forums | DrivingSales
I think a lot of this can be found through Google, but it might require a lawyer to get it all together officially.
- Dec 30, 2009
- 1,883
- 480
- First Name
- Yago
Dave,
I believe a vendor can charge "per lead" anywhere in the US, what they can't charge for in some states is for "lead performance" meaning that you pay for the lead only if it results in a sale as that is considered "bird dogging".
I believe a vendor can charge "per lead" anywhere in the US, what they can't charge for in some states is for "lead performance" meaning that you pay for the lead only if it results in a sale as that is considered "bird dogging".
- May 1, 2005
- 4,511
- 1,807
- Awards
- 12
- First Name
- Jeff
I'm not sure if a list of states that do no allow a per-lead or more importantly a bird dog restriction would help much as most states have some form of this law in place but with different restrictions.
I had this saved in my Dropbox and I can't remember where I copied it from...
Long-standing dealership practices aren’t necessarily legal dealership practices. Many of these questionable practices have been around for years and often dealers keep using them, because “everyone does it.” Dealers don’t think twice or consider whether the practices are legally permissible or even if they are good for business. The practices, over time, have simply become part of the way dealership operations are run.
Referral fees are a good example of these practices. I’m not talking about leads purchased from a typical lead provider or the purchase of a marketing list. I’m talking about referral fees paid by one dealership to another dealership or payments between sales associates of different dealerships for the referral of a customer who buys a car. The arrangement could be part of a formal referral fee program between dealerships—let’s say a franchise dealership and a buy-here-pay-here dealer—or simply an informal agreement between sales associates from different dealerships. For example, let’s say sales associate Frank at franchise dealership X agrees to refer his “turndown” customers to sales associate Tom at independent dealer Y. The arrangement could even involve an individual not employed by a dealership. No harm, right? Well, maybe more than you might expect. If you, or your dealership, are involved with such a program, here are a couple of things you ought to consider:
State law may prohibit paying for a referral in connection with the sale of a car.
Some states specifically prohibit the practice, commonly called “bird-dogging.” Louisiana is such a state. Some states, like Ohio, require that any commission or compensation paid for the sale of a car be to a person licensed as a salesperson in the dealer’s employ. Other states have dealer and salesperson licensing laws that sweep in broker activities. Finally, some states have laws specifically targeted at the “brokering” of cars. Some of these laws require brokers to be licensed, while others simply prohibit the brokering of the sale of a car.
Information exchanged could violate privacy laws.
Even very basic information regarding a customer, like the customer’s name, could be “nonpublic personal information” under the federal Gramm-Leach Bliley Act (GLBA). Credit applications and a customer’s FICO score also would constitute nonpublic personal information.
Under the GLBA, nonpublic personal information cannot be shared with unaffiliated third parties unless the dealership’s privacy notice specifically states that the dealership shares information in such a way. If Social Security numbers are shared, other state privacy laws may be violated. A significant number of states have laws that prohibit certain disclosures relating to Social Security numbers. In addition, if an employee shares customer information with another person against dealership policy, the disclosure could constitute a security breach. Some states have security breach laws that apply only to paper documents, but other states’ laws also cover electronic records.
I had this saved in my Dropbox and I can't remember where I copied it from...
Long-standing dealership practices aren’t necessarily legal dealership practices. Many of these questionable practices have been around for years and often dealers keep using them, because “everyone does it.” Dealers don’t think twice or consider whether the practices are legally permissible or even if they are good for business. The practices, over time, have simply become part of the way dealership operations are run.
Referral fees are a good example of these practices. I’m not talking about leads purchased from a typical lead provider or the purchase of a marketing list. I’m talking about referral fees paid by one dealership to another dealership or payments between sales associates of different dealerships for the referral of a customer who buys a car. The arrangement could be part of a formal referral fee program between dealerships—let’s say a franchise dealership and a buy-here-pay-here dealer—or simply an informal agreement between sales associates from different dealerships. For example, let’s say sales associate Frank at franchise dealership X agrees to refer his “turndown” customers to sales associate Tom at independent dealer Y. The arrangement could even involve an individual not employed by a dealership. No harm, right? Well, maybe more than you might expect. If you, or your dealership, are involved with such a program, here are a couple of things you ought to consider:
State law may prohibit paying for a referral in connection with the sale of a car.
Some states specifically prohibit the practice, commonly called “bird-dogging.” Louisiana is such a state. Some states, like Ohio, require that any commission or compensation paid for the sale of a car be to a person licensed as a salesperson in the dealer’s employ. Other states have dealer and salesperson licensing laws that sweep in broker activities. Finally, some states have laws specifically targeted at the “brokering” of cars. Some of these laws require brokers to be licensed, while others simply prohibit the brokering of the sale of a car.
Information exchanged could violate privacy laws.
Even very basic information regarding a customer, like the customer’s name, could be “nonpublic personal information” under the federal Gramm-Leach Bliley Act (GLBA). Credit applications and a customer’s FICO score also would constitute nonpublic personal information.
Under the GLBA, nonpublic personal information cannot be shared with unaffiliated third parties unless the dealership’s privacy notice specifically states that the dealership shares information in such a way. If Social Security numbers are shared, other state privacy laws may be violated. A significant number of states have laws that prohibit certain disclosures relating to Social Security numbers. In addition, if an employee shares customer information with another person against dealership policy, the disclosure could constitute a security breach. Some states have security breach laws that apply only to paper documents, but other states’ laws also cover electronic records.
