Virginia Automobile Dealers Association (VADA)’s Post

Check out the latest from ComplyAuto legal team! Even though the Rule’s implementation is currently delayed, it’s important for dealers to start reviewing their advertising practices, disclosure processes, and recordkeeping systems to comply with both existing regulations and those likely to come.

🚘 Still trying to figure out what the CARS Rule means for your dealership with the pause in effect? Don't worry; we've got your back! With our comprehensive FTC CARS resource hub designed to keep you updated on all things CARS compliance, from the latest regulations to important deadlines, you can seamlessly navigate any confusion. Don't miss your chance to get ahead of the deadline and ensure your dealership is on the right track. 🔗 https://hubs.ly/Q02k4PFp0 #DealershipCompliance #CARSRule

Can a purchase agreement be rescinded if an electric car does not achieve the range stated by the seller? That question is central to a case that was submitted to the Supreme Court in cassation. The court of appeals answered this question in the affirmative. The Supreme Court upheld that opinion. The case involved the purchase of an electric car (a Jaguar I-PACE) by a business party. The seller specified a range 'up to 480 kilometers' based on the so-called WLTP standard (Worldwide harmonized Light vehicles Test Procedure). The buyer invoked rescission of the purchase contract because after the purchase, it turned out that the car's range was only about 300 kilometers. The district court rejected the buyer's claim; the court of appeals granted it. The court of appeals' reasoning included that based on the seller's statements regarding the range of the Jaguar I-PACE, the buyer could reasonably expect that under usual circumstances (normal driving, including winter driving, especially highway driving) the car would have a significantly higher range than the approximately 300 kilometers actually achieved. Since this range achieved under normal circumstances is more than 35% less than the range of 480 kilometers stated by the seller, the car did not comply with the purchase agreement concluded between buyer and seller, according to the court of appeals. #attorneys #thefirm #consumerlaw #caselaw Source: https://lnkd.in/ePB9seiF (ECLI:NL:HR:2024:980) Photo: Darin Crouch

🚘 Still trying to figure out what the CARS Rule means for your dealership with the pause in effect? Don't worry; we've got your back! With our comprehensive FTC CARS resource hub designed to keep you updated on all things CARS compliance, from the latest regulations to important deadlines, you can seamlessly navigate any confusion. Don't miss your chance to get ahead of the deadline and ensure your dealership is on the right track. 🔗 https://hubs.ly/Q02k4_T50 #DealershipCompliance #CARSRule

The Motor Ombudsman, the Ombudsman dedicated to the automotive sector, is marking two decades since it was announced that the Motor Industry Code of Practice for New Cars received full ‘Stage Two’ approval from the former Office of Fair Trading (OFT). Superseding the Motor Industry Code of Practice, unveiled in 1976, the New Car Code was the first Code of Practice from any industry to achieve this prestigious status. Being given the green light in September 2004 meant that the Code was deemed to be effective in promoting and safeguarding the interests of motorists, and provided added protection to consumers when buying a new car. Read the full article here 👇🏼 #AutomotiveAftermarket #AutomotiveNews #AftermarketNews #MotorOmbudsman #NewCarCode

The Federal Trade Commission's CARS Rule is a commonsense answer to problems that plague car buyers: hidden car pricing and junk add-ons. This Rule is backed by a decade of research about issues that continue to make buying a car time-consuming and more expensive. Car dealers benefitting from dishonest pricing want to kill the CARS Rule because it will force them to compete with honest dealers. We believe the Fifth Circuit should reject this frivolous lawsuit and let the Federal Trade Commission level the playing field for car buyers. #CARSRule #TruthInCarBuying #EndJunkFees

Within 3 days of having purchased a Ford Focus RS, my clients discovered various latent defects which were not disclosed before the sale, which defects rendered the vehicle unsafe, of poor quality and not of the standard that was reasonably expected for the vehicle's intended use. Their cries for assistance went unanswered for months whereafter, they were told that "the customer is always king" but then left with no relief or suitable assistance. Being a passionate car enthusiast and an attorney at the time when my clients and I started this journey, I am overjoyed to see that the National Consumer Tribunal has reaffirmed the principles relating to a consumers rights in terms of section 55 and 56 of the Consumer Protection Act, 68 of 2008, as amended ("the Act"). One ought to remember that when purchasing a second hand vehicle, the consumer has a right to safe and good quality goods with the automatic application of an implied warranty against all latent defects. The National Consumer Tribunal's findings are welcomed and serve to re-assure unsuspecting customers that where they discover a latent defect within 6 (Six) months of taking delivery of the vehicle and such defects result in the vehicle failing to satisfy the requirements or standards contemplated in section 55 of the Act, the supplier must, at the direction of the consumer: 1. Repair or Replace the failed, unsafe or defective vehicle; or 2. Refund to the consumer the price paid for the vehicle. More importantly, second hand car dealerships are not exempt from complying with the provisions of the Act and where any dealership is found to have contravened the Act or to have performed prohibited conduct in terms thereof, an administrative fine may be imposed of 10 (Ten) percent of the dealership's annual turnover or R1,000,000.00 (One Million Rand), whichever amount is the lesser. https://lnkd.in/dQa4QXA5 https://lnkd.in/dyxX32an https://lnkd.in/dmbMXvSZ

Reminder to dealership owners and managers: The new CARS Rule takes effect in July 2024. Have you read it yet? It's essential to take a moment and do so. For reputable dealers, it shouldn't change much, but it's a good thing if it does change the process of others. The rule is clear: no lying to customers, withholding rebates, or hiding the true total price to purchase. Make sure to disclose all the terms of the TILA section, and don't hide fees or add worthless items to an addendum tag. The law will also address the old-school practices of having a “back-up” contract (RISC), using dealer license plates to “lend” a vehicle to a customer to avoid title and DMV laws, packing payments, hiding ancillary products, etc. In other words, do business the right way, and remove the offenders from your stores or face the consequences of their actions. Lastly, claiming ignorance and deflecting blame to the scapegoat will no longer get you off the hook. Stores large and small, urban and rural, will be fined and shut down. You have been warned. Let's work together to make the car-buying experience transparent and honest for everyone involved. #Transparency #Honesty #AutomotiveIndustry

ComplyAuto illustrates one of the reasons it is critical to maintain partnerships: They are tracking developments in the FTC CARS Rule argument. Get the quick analysis of the latest developments but check out section 4, "Reading the Tea Leaves," where the legal team including Hao Nguyen, Chris Cleveland and others provide their own insights on the case. They also offer a look at what you as a dealer should be doing in the meantime.

NIADA Strongly Opposes FTC's New Auto Marketing, Car Buying Rules https://lnkd.in/g-UAjn8E #glenviewfinance #subprimefinance #usedcardealer #autofinance #creditbuilder #independentdealer