GNYADA March 2015 Newsletter

Carl Heastie Elected New Speaker of NY State Assembly

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about additional services that vehicle needs or making special offers is con- sidered telemarketing, which requires prior express written consent. Potential Damages Damages range from $500 to $1,500 per texting violation, which can be asserted in a class action without a cap on liability. A large automotive dealer group recently settled a claim for $2.5 million—the lawsuit contended it did not have prior written consents for text messaging. The settlement consisted of a $175 fine for each text, increasing to $500 if the customer had opted out, $10,000 to the named plaintiff, and $600,000 for the plaintiff’s attorney’s fees. For the first time in 21 years, a new Speaker of the Assembly is responsi- ble for appointing new Committee Chairs. Mr. Heastie’s key appoint- ments include Joe Morelle of Rochester as Majority Leader, David Gantt of Rochester as Transportation Committee Chairman, and Jeffrey Dinowitz of the Bronx as Consumer Affairs & Protection Committee Chairman. Many of the bills in the Assembly that affect dealers are referred to the Transportation and Consumer Affairs Committees for consideration. GNYADA is already tracking several bills in progress and is looking for- ward to working with the new Speaker and Committee Chairs.

Bronx Assemblyman Carl Heastie was elected as Speaker on February 3. He takes over following Sheldon Silver’s resignation after Silver’s arrest by federal authorities on cor- ruption charges. Mr. Heastie first entered the State Assembly after the 2000 election. His legislative record includes sup- port for GNYADA’s most recent effort to amend the Motor Vehicle Franchise Act. He makes history by being the first African-American to be elected Speaker. His district includes several North Bronx neighborhoods.

Mark Schienberg with Assemblyman Carl Heastie during his visit to GNYADA’s Education Center

4 Texting Customers Can Be Risky for Dealers By Randy Henrick

Best Practices Communicate via text with your customer only to the number the customer authorized and only to pro- vide information, not to sell or pro- mote special offers. Use a standard smart phone to text one by one (to avoid autodialing/telemarketing) and you should be safe. Avoid using a PC or a phone that can autodial multiple numbers and don’t use a prerecorded message. You could be liable for violating the FCC rule. Randy Henrick is Associate General Counsel and lead Compliance Counsel for Dealertrack Technologies, Inc. This article is intended for information purposes only and does not constitute the giving of legal or compliance advice. The information provided herein should not be acted upon without specific legal advice based on your particular situations from a knowledgeable attorney.

As your customers become comfort- able communicating with you via text messaging, dealers may be tempted to use texting to market and advertise products and services. But texting is considered a form of telemarketing and the rules on obtain- ing consents for selling via texting have changed dramatically over the past few years. Nowadays, you must go above and beyond such things as verbal consent and having an “established business relationship.” Potential Trouble If a customer brings his or her car in for service and asks to be texted when the job is complete and the car is ready for pickup, that’s a transaction call, meaning the consumer just giv- ing a cell number with the repair order is sufficient. However, texting

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

The Newsletter • March 2015 3

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