#RefreshFriday FTC Rules - More Ammo To Get Ready | Tom Kline of Better Vantage Point

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Jeff Kershner

Jeff Kershner

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#1

View: https://www.youtube.com/watch?v=waPxDRk4kFc



Scary but necessary. That's how we always feel hosting @tomkline / Tom Kline of Better Vantage Point. Of course, we are going to be focusing on July's FTC rules. We had some reprieve, but these rules are coming down the pipe again.There are still technology genres that haven't done anything to prepare... that we know of.

There are still many dealers who are not ready and may not understand how to communicate with their vendors to determine if they're in good shape or not. So we wanted to have Tom on well before July to give everyone enough time to make some meaningful changes if necessary.


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#3
Jeff Kershner said:

View: https://www.youtube.com/watch?v=waPxDRk4kFc



Scary but necessary. That's how we always feel hosting @tomkline / Tom Kline of Better Vantage Point. Of course, we are going to be focusing on July's FTC rules. We had some reprieve, but these rules are coming down the pipe again.There are still technology genres that haven't done anything to prepare... that we know of.

There are still many dealers who are not ready and may not understand how to communicate with their vendors to determine if they're in good shape or not. So we wanted to have Tom on well before July to give everyone enough time to make some meaningful changes if necessary.


Join us LIVE on Facebook, LinkedIn, or YouTube Friday at 1PM
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Click to expand...

Tuning in, this will be great! I was just discussing this exact topic with some dealer partners.

It will be a Chinese fire drill come July if preparations are not begun sooner than later.
 
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#4
I'll be interested to hear whether this is more extreme than it sounds to me. It doesn't seem to cover as many deceptive tactics as the consumer might hope for. A lot of the things it's getting rid of are things that dealers created during the Covid craze that they could get away with running with. With the market returning to some sanity, these things will be harder to do anyway. So it seems to me that they are only nixing things that dealers will be nixing on their own anyways. And we end up with more regulation without really accomplishing much.
 
#6
BillKVMotorCo said:
I'll be interested to hear whether this is more extreme than it sounds to me. It doesn't seem to cover as many deceptive tactics as the consumer might hope for. A lot of the things it's getting rid of are things that dealers created during the Covid craze that they could get away with running with. With the market returning to some sanity, these things will be harder to do anyway. So it seems to me that they are only nixing things that dealers will be nixing on their own anyways. And we end up with more regulation without really accomplishing much.
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Yeah, the teeth of what was originally proposed are less sharp. However, there are still some drastic differences the FTC is looking for compared to the way dealers traditionally do things online and on the lot. And then we also have Graham Bleach Lilley that we can't forget about. Although I think that one's more of a burden on technology companies.
 
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#8
The article Tom was highlighting on the show...

Jeff Wyler Automotive notifies consumers of data breach involving personal information

The files detected contained personal information containing full names, dates of birth, Social Security numbers, driver's license or state identification numbers and financial account information.

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An unauthorized third party hacked into Jeff Wyler Automotive Family's computer systems and potentially accessed personal customer information, the auto retail group said Tuesday. The retailer did not say how many individuals were impacted.

The files detected contained personal information containing "full names, dates of birth, Social Security numbers, driver's license or state identification numbers, medical and/or health insurance information and financial account information," the Ohio-based company said in a statement.

Jeff Wyler Automotive Family notified individuals whose information might have been compromised on Tuesday. Consumers were provided best practices on how to respond and given complimentary credit monitoring if their Social Security numbers were compromised.

The unauthorized party accessed the files in late May 2023, Wyler said in a statement. The retail group "contained the incident and commenced an immediate and thorough investigation," it said. Wyler said it has found "no evidence of identity theft or financial fraud" during its investigation, which concluded late last month.

The Federal Trade Commission voted in October to amend existing Safeguard Rules to require nonbanking financial institutions — such as car dealers — to notify the agency no less than 30 days after the discovery of a security breach involving the information of at least 500 consumers. The new amendment takes effect May 13, 2024.

FULL ARTICLE: https://www.autonews.com/finance-insurance/wyler-automotive-notifies-consumers-data-breach
 
#9

FTC CARS Rule: Combating Auto Retail Scams – A Dealers Guide​


The primary purpose of the FTC’s CARS Rule is to add truth and transparency to the car buying and leasing process by making it clear that certain deceptive or unfair practices are illegal – for example, bait-and-switch tactics, hidden charges, and other conduct that harms consumers and honest dealers. Why is it called the CARS Rule? Because the Rule is about Combating Auto Retail Scams that cost consumers billions of dollars each year and cause honest dealers to lose business.

The Rule lays out four basic principles to protect people shopping for cars and trucks – practices that are already business-as-usual for honest dealers. This Dealers Guide introduces industry members to what the CARS Rule means for their dealerships.

Full Dealers Guide on FTC website:

www.ftc.gov

FTC CARS Rule: Combating Auto Retail Scams – A Dealers Guide

The primary purpose of the FTC’s CARS Rule is to add truth and transparency to the car buying or leasing process by making it clear that certain deceptive or unfair practices are illegal – for example, bait-and-switch tactics, hidden charges, and other conduct that harms consumers and honest...
www.ftc.gov www.ftc.gov
 
#10
NADA had the texas auto dealer association file the request for a stay in a more friendly court vs having NADA themselves file it in DC courts. And they waited to file it until after the permitted period to try to delay it as long as possible.

To appeal the stay, the FTC would have had to prove they were more than likely going to win in court. But the FTC chose not to appeal it at the last minute and voluntarily issued their own stay. So that’s a good sign that they aren’t 100% confident they’ll win on every point.

It will more than likely still go in effect at a later date though as a more pared down version. This all started a couple years ago when the FTC fined a payday loan company $1.3B and the Supreme Court overruled it. A lot of the stuff in the CARS rule technically could already be subject to FTC fines if they wanted to under current law, this is just formalizing it more and outlining fines to be able to survive future Supreme Court challenges.

NADA is lobbying the house and senate too, the house’s most recent bill attempt failed, but the senate is trying to delay it more by requiring a substantive study on the benefits and cost of the regulations. Downside is lawmakers in competitive districts will be afraid it will become an easy attack ad for their opponent to run "Shady Representative Miller voted to allow his car dealer friends to keep ripping customers off"

This likely bought us all an extra 6 months to prepare!
 
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