GNYADA May 2017 Newsletter

Important Reminders about Texting Customers Don’t click “send” without consent

5

While text messaging is a quick and efficient way to communicate with customers, dealers must exercise caution when doing so. Having an “established business relationship” with customers, or even their verbal consent, is not sufficient justification to send them marketing texts. Before sending a customer a promotional text, dealers must obtain express, written consent; this can be given in the form of an email, a checked box on the dealer’s website, a voice recording, or a written signature but not via text message. Customers’ opt-in methods must contain clear language that does not obligate them to receive promotional texts if they also (or only) wish to receive service-reminder texts. For example, a repair order stating, “I When a customer purchases a vehicle from a dealership and wants to regis- ter/title it outside NYS, an in-transit permit is required. The below Q&A addresses the questions that DMV- DIRECT most frequently receives regarding these permits: Q If my customer intended to register/title their vehicle out-of-state, but after taking delivery decided they’d prefer to keep their vehicle in New York, can I issue them new plates frommy inventory? A No. The vehicle paperwork must be reprocessed by a local DMV office. When the new title and regis- tration are created, DMV will collect the appropriate NYS sales tax; they will also void the in-transit request so 6

authorize (Dealership) to send me text messages for the purpose of providing updates, offers, discounts and solicitations,” is likely not sufficiently clear. If a dealership intends to send marketing texts, here are best practices to keep in mind: In his/her consent, a customer must provide the phone number to which promotional texts may be sent; Warn customers that message and data rates may apply; Use a clear, conspicuous disclaimer that consenting to promotional texts is not a condition of sale; Include a clear opt-out option in every message. If texting back-and- forth with the customer, the opt-out must be within the first message; Ensure all text messaging goes n n n n n DMV knows the vehicle is remaining in-state. Q How long do I have to submit an in-transit permit to the DMV for processing? A As with all motor vehicle work, the necessary documentation to process a NYS in-transit permit must be remit- ted to the DMV (or your processing service) within five calendar days. Q I’m issuing an in-transit permit for a vehicle with a lien on it. What are my responsibilities for securing the lien? A In this circumstance, the dealership must secure the lien by making sure the correct lienholder information is listed in all documentation for both the in-transit permit and all out-of-

through the dealership, not through employees’ personal devices. Express consent — this can be given by a customer providing a mobile number as the contact for a repair order or verbally stating “text me when my car is ready” — must be obtained to send transactional text messages and updates, such as appointment reminders, service status, or online payment instructions for services performed. GNYADA recommends having separate language on repair orders allowing customers to consent to receive transactional text messages. If a dealer is going to send customers promotional or marketing messages, the dealership attorney should be consulted to ensure compliance with all applicable laws. state paperwork (including the lien- holder section on the back of the MSO/MCO). Failing to do this may cause the dealer to be financially responsible for the lien until it is per- fected/secured. Q How long is an in-transit permit valid? A An in-transit permit is valid for 30 days from the date it is issued. Q Are there any states that do not recognize in-transit permits? A Yes: Massachusetts. Massachusetts does not recognize the NYS in-transit permit.

In-Transit Permit FAQ

If you have DMV-related questions, call DMV-DIRECT at 718.747.0400.

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

The Newsletter • May 2017

4