(KANSAS CITY, MO – July 24, 2018) The Federal Trade Commission announced in mid-July that it conducted the first compliance sweep of car dealerships since it began requiring the use of a new Buyers Guide sticker on all used vehicles. The sweep took place between April and June 2018 in 20 cities nationwide. The FTC coordinated its efforts with 12 partner agencies in seven states to ensure that dealers are displaying a revised version of the Buyers Guide, which contains warranty and other information for consumers.
In the sweep, inspectors found that approximately 70 percent of vehicles displayed Buyers Guides and roughly half of those displayed the revised Buyers Guide announced in late January. The FTC Act provides for penalties of up to $41,484 per violation for those dealerships that do not properly comply.
This delivers quite a blow to auto dealerships who haven’t taken time to make the changes set forth by the FTC. Making sure you’re compliant with FTC changes can save your dealership money and, more importantly, help protect yourself, your customers, and create an ethical car-buying environment.
At The ACE Group we offer compliance services through both Mosaic Compliance Services and GVO3. We partner with the best compliance companies in the industry to ensure you steer clear of steep FTC fees.
Compliance is a multi-faceted process consisting of more than just safeguarding customers’ personal information and filling out forms correctly. By connecting you to our compliance partners you will get a better sense of how you measure up against the ever-evolving rules being enforced upon auto dealerships.
The FTC reports that those dealerships that were not compliant can expect follow-up inspections to ensure compliance.
The ACE Group is an industry leader in automotive consulting products and services that help our dealer partners boost profitability, and more importantly, increase customer satisfaction and retention. We offer a broad range of Finance & Insurance solutions, in addition to providing expert training and support for all dealership personnel.