California State Bill AB-2107

[DrewAment]

Has anyone seen or looked at the state bill running through CA right now? It is AB2107, and is sponsored by the CNCDA (California New Car Dealers Association)... looks to have full bi-partisan support - and will most likely be law come Jan 1.

Full breakdown here -- Fact Sheet

The thing that caught my eye....




Any comments or thoughts? CA Dealers... would love to hear what you think.

 

[Alex Snyder]

Sounds contradictory. OEMs can't force a specific vendor on a dealer, but the OEM needs to approve the dealer's choice

 

[AWNick]

Yeah I'm not sure if this makes any sense haha.

 

[mikesayre]

It is AB2107, and is sponsored by the CNCDA (California New Car Dealers Association)... looks to have full bi-partisan support - and will most likely be law come Jan 1.

It's a start, hopefully they meant without manufacturer approval.

The big issue is co-op ad funds reimbursement, if a dealer doesn't use an approved vendor they would get only 50% or in some cases nothing, or the OEM makes the co-op process an extreme hassle to process without using an approved vendor. That's inescapable for most dealers, they rely heavily on those co-op ad funds.

 

[craigh]

California

Yeah I'm not sure if this makes any sense haha.

What else is new?

 

[Jason@nabthat]

Here is the exact wording...so in essence the manufacturer can not dictate who the dealer can use for digital services

11713.13.
It is unlawful and a violation of this code for any manufacturer, manufacturer branch, distributor, or distributor branch licensed under this code to do, directly or indirectly through an affiliate, any of the following:

(h) Restrict the ability of a dealer to select a vendor of the dealer’s choice for digital services with approval by the manufacturer, manufacturer branch, distributor, distributor branch, or affiliate. For purposes of this subdivision, digital services includes, but is not limited to, Web site and data management services.

 

[C Dorman]

I'd say the wording is confusing, but that's par for the course in my native state. Personally and professionally, I hope to God it happens and all of the BS associated with OEM coop programs comes to a screeching halt here in the Golden State.