FTC AMA or ATA... ask Tom Kline anything about the FTC

[Alex Snyder]

We did an ask @tomkline before, and we thought it was time to bring it back. What questions do you have about the FTC stuff going on now?

 

[BillVaughnKMC]

We did an ask @tomkline before, and we thought it was time to bring it back. What questions do you have about the FTC stuff going on now?

Why do we always have to punish the majority for what the minority does? I'm sure that's not the kind of question you were asking for...

 

[Balboa Bill]

Hello! The challenge is being compliant and knowing what is really required, without overdoing it. For example, we have our fees listed on the VDP, etc. What about homepage banners? Our agency is listing the doc fee on the homepage banner for any vehicle. Is there a one-click rule to get to the specifics? Instead of MSRP, should we list it as "Total Price" and include the fee? I don't see any other dealer websites posting like this.

Is there a website example out there that is correct to reference?
Thanks!

 

[tomkline]

Why do we always have to punish the majority for what the minority does? I'm sure that's not the kind of question you were asking for...

Bill, In short, the auto business is not being punished. The current administration is going after many industries who do not have transparent pricing, including ticket companies (StubHub, LiveNation) and pharmacy companies (Express Scripts), to name a few.

 

[tomkline]

Hello! The challenge is being compliant and knowing what is really required, without overdoing it. For example, we have our fees listed on the VDP, etc. What about homepage banners? Our agency is listing the doc fee on the homepage banner for any vehicle. Is there a one-click rule to get to the specifics? Instead of MSRP, should we list it as "Total Price" and include the fee? I don't see any other dealer websites posting like this.

Is there a website example out there that is correct to reference?
Thanks!

View attachment 10005

Bill, the pricing must be consistent throughout. It will take some time for you to iron this out. Consider mystery shopping yourself so you can look at it from a customer's perspective.

65% of the 97 dealerships who had received the letter have between 1-5 dealerships. This is an issue for all dealers, big and small.

Some dealers are dragging their feet here. You will hear more from the FTC on this, I promise.

 

[BillVaughnKMC]

Bill, In short, the auto business is not being punished. The current administration is going after many industries who do not have transparent pricing, including ticket companies (StubHub, LiveNation) and pharmacy companies (Express Scripts), to name a few.

Funny, I was just thinking about this conversation on my drive in this morning. I was going to note how I saw a billboard the other day from a company that provides those large dumpsters people can order for temporary use. It mentioned how they had "no surprise fees," which obviously meant a lot do. Thought it was interesting we are having this argument with dealers yet other business types have a similar problem.

 

[tomkline]

Funny, I was just thinking about this conversation on my drive in this morning. I was going to note how I saw a billboard the other day from a company that provides those large dumpsters people can order for temporary use. It mentioned how they had "no surprise fees," which obviously meant a lot do. Thought it was interesting we are having this argument with dealers yet other business types have a similar problem.

As the Republican party has become more populist, they want to appeal to a wider demographic. You will continue to hear about this issue. Cheers.

 

[BillVaughnKMC]

As the Republican party has become more populist, they want to appeal to a wider demographic. You will continue to hear about this issue. Cheers.

While alienating their base in many cases...

 

[Ryan Everson]

While alienating their base in many cases...

I'm thankful this is all that's being required by this administration.

Ultimately, I think this is what the majority of dealers wished would be the case all along. Everyone was just gun shy about being the first in their market to make their cars look like $500 worse deals than every other dealer. This helps level the playing field and eliminates the minority of unscrupulous dealers tarnishing everyone else's reputation.

In an alternate reality, we had Chinese EV manufacturers ready to set up camp across the border in Mexico and flood our market with cheap D2C EVs.

TikTok has made those EVs desirable by showing how much value they provide for the money, even if a big reason they can offer that much value is CCP subsidies. At the end of the day, any vehicle becomes desirable when it’s half the price of the other available options, even a Chinese EV.

At least we kicked that can down the road a while longer.

 

[BillVaughnKMC]

I'm thankful this is all that's being required by this administration.

Ultimately, I think this is what the majority of dealers wished would be the case all along. Everyone was just gun shy about being the first in their market to make their cars look like $500 worse deals than every other dealer. This helps level the playing field and eliminates the minority of unscrupulous dealers tarnishing everyone else's reputation.

In an alternate reality, we had Chinese EV manufacturers ready to set up camp across the border in Mexico and flood our market with cheap D2C EVs.

TikTok has made those EVs desirable by showing how much value they provide for the money, even if a big reason they can offer that much value is CCP subsidies. At the end of the day, any vehicle becomes desirable when it’s half the price of the other available options, even a Chinese EV.

At least we kicked that can down the road a while longer.

I'd say you nailed all of that.