GNYADA February 2020 Newsletter

GNYADA Asks AG for Clarity on Credit Card Surcharges

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The Association met with the Attorney General’s Office seeking clarification on credit card surcharges. GNYADA asked about a compliance letter the Attorney General’s Office distributed in 2018 to businesses that addresses the New York Credit Card Surcharge Law and a NYS Court of Appeals decision that prohibits businesses from adding surcharges to credit card purchases. The letter said that “merchants may not simply post that they are adding a surcharge or additional fee, or that there will be a percentage fee added to the bill.” GNYADA explained that it is virtually impossible for franchised new car dealers to post a sign in their business that lists the price for the hundreds, if not thousands, of various parts and labor products and services. The Attorney General’s Office agreed to review a GNYADA proposal for how dealers can satisfy the disclosure requirements given their unique circumstances. In early February, GNYADA followed up with the Attorney General’s Office and will keep dealers informed when new information becomes available.

Best Practices In the meantime, the Association suggests that dealers should not post a general sign informing customers that a certain percentage surcharge has been added to the price. Dealers may continue to offer a discount for cash payments.

NYC Eliminates Paper Police Book for Dealers

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Since the inception of VERIFI, there has been some uncertainty and confusion regarding whether or not dealers must keep paper copies of the Book of Registry/Police Book and the Plate Log. VERIFI maintains electronic copies of both the Book of Registry and Plate Log, which means dealers do not have to maintain paper versions of these two books. However, until recently, it was a different story in NYC. GNYADA lobbied New York City for over a year to change the City’s requirement for dealers to maintain a

paper book of registry and adopt to an electronic format. Earlier this year, NYC agreed and made their rules consistent with State DMV rules by eliminating print Police Book Requirements. However, all dealers will need paper versions of the Book of Registry and the Plate Log for audits relating to vehicle transactions prior to the roll-out of VERIFI. Per DMV regulations, GNYADA’s Dealer Record Retention Chart lists the retention periods for Books of Registry for at least 3 years and the Plate Log for at least 5 years.

2 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • February 2020