GNYADA February 2016 Newsletter

Lawsuits Announced Against Local Dealerships For Alleged Deceptive Practices

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with General Motors and two dealer- ship groups.

for falsely purporting to “fix” indi- viduals’ credit scores.

Settlements are running into the mil- lions of dollars. In addition to restitu- tion, dealers typically pay for state and federal costs accrued in pursuing these violations. Takeaway for Dealers To avoid violations under these regu- latory bodies’ evolving rules, dealers must review all aftermarket products they offer, as well as the practices that are used in advertising and sell- ing all items, assuring that proper disclosures are made to consumers. Further, dealers should stop selling credit repair products.

Under State law, only certain types of nonprofits and licensed attorneys can charge or collect any fee prior to per- forming credit repair services. Federal law has similar prohibitions in taking advance fees and requires specific disclosures.

DEALER ADVERTISING UNDER SCRUTINY

The New York Attorney General is taking enforcement actions against dealers’ sales practices, and the Federal Trade Commission has set- tled deceptive advertising charges with multiple dealerships across the country. NY AG FINES DEALERS SELLING CREDIT REPAIR PRODUCTS Recently, the AG sued a local dealer- ship group and simultaneously settled with other local dealers who sold unlawful credit repair services to cus- tomers. The AG’s Consumer Frauds Bureau began the process of shutting down Credit Forget It last summer ,

The AG and the FTC continue active- ly investigating dealership advertising practices. The AG’s office in New York has settled with several local dealers for alleged advertising guide- line violations. New ad enforcements regarding recalls: Regulatory agencies are now review- ing advertised preowned vehicles that are promoted as having gone through multi-point safety equipment inspec- tions but subsequently turn out to have open recalls. The FTC recently entered into agreements on this issue

From Social Objectives to Business Objectives The power of the Facebook News Feed February 24, 2016 10:00am-1:00pm

Save the Date

Center for Automotive Education & Training 15-30 Petracca Place, Whitestone NY 11357 Presented by Trace Przybylowicz, Global Marketing Solutions, Facebook

Trace Przybylowicz will cover the ever-changing social media landscape and the incredible power of the Facebook News Feed. Trace will also discuss how Facebook has moved beyond Likes, Comments and Shares into a world of measurable business results. To register, please contact: Carole at carole@gnyada.com or 718.640.2012

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • February 2016 3