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CDK & ReyRey lost to NADA in court

Alex Snyder

President Skroob
May 1, 2006
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NADA announced a triumphant court battle for all dealers and many vendors :fight::yabuddy:

This was an Arizona court case that has yet to prove a national foothold, but check out these three bullet points:
  • makes it illegal for vendors to charge for access to the customer and other dealer data held in dealer systems;
  • makes it illegal for any third party to take any action with regard to such data without the dealer’s written permission; and
  • makes vendor contracts unilaterally terminable by dealers on 90-days’ notice.

:dance2:
 
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Alex Snyder

President Skroob
May 1, 2006
2,934
1,658
Awards
1
First Name
Alex
As with most discussions in the DealerRefresh forums, this thread will also be a lot of conjecture. We only have an article above to go off of, currently, and there is a lot of room to read many things into this ruling and far more things to miss. It also goes without saying that we are dealing with courts and governments so don't expect anything to happen overnight.

Questions I have:
  • Will all vendors put a carve-out into their agreements for Arizona now? I have to assume it will be business as usual in the rest of the country.
  • How much further than DMS solutions will this go? What about HomeNet who charges vendors for a feed of the dealer's inventory data and images? What about DealerSocket charging providers for data too (as witnessed in this thread)?
  • How will Reynolds get around their "reportedly longer" (like 6 to 12 year) contract terms in Arizona? This law has been on the books since 2019. What is the contract term practice with other vendors currently?
  • What other Automobile Dealer Associations are lobbying their states to do the same? What else might they be asking for on top of what Arizona has done?
  • THE BIGGEST QUESTION: Charging other vendors for data is a lucrative industry. How will these revenues be supplemented?
 
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