Automotive dealership compliance is a vast topic, yet integral to running a successful dealership. While it may be impossible to commit all of the regulations, laws, and rules to memory, it's important to have quick access to compliance resources. The most efficient resource for an automotive dealership is a consulting firm. Consulting firms help automotive dealerships understand and adhere to compliance standards. With the prospect of compliance penalties ranging between $15,000 and $30 million investing in a consulting firm is highly beneficial.
3 Important Compliance Laws Dealerships Should Know
1) Americans with Disabilities Act of 1990
The Americans with Disabilities Act of 1990 was established to prohibit the discrimination and exclusion of persons with disabilities from taking part in everyday activities. For automotive dealerships, this includes physically modifying the business to accommodate wheelchair access, as well as making the showroom accessible. The Americans with Disabilities Act also applies to the hiring of employees.
2) Financial Modernization Act of 1999
With cyber security becoming integral for business operations, the Financial Modernization Act of 1999 applies to a new range of secure information. Regulated by the Federal Trade Commission, this act ensures the privacy of customer information via regulated security measures and confidentiality guidelines of their "nonpublic personal information". Automotive dealerships require customers to provide confidential data including names, addresses, credit card information, and bank information. The Financial Modernization Act provides guidelines and procedures that should be followed when handling this type of confidential data.
3) Equal Credit Opportunity Act of 1974
The Equal Credit Opportunity Act of 1974 (ECOA) aims to prevent discrimination of any credit transaction based upon race, gender, color, religion, national origin, marital status, or age. Along with prohibiting discrimination, this act requires creditors to notify applicants of actions to their credit applications.
While this law applies most directly to banks, retailers, credit unions, and finance companies, automotive dealerships should also be aware of its stipulations through relationships with creditors who verify customer credit.
For more information, feel free to visit the below articles:
AutoDealer: 19 Laws, Rules, and Regulations That Can Cost You More Than Money
F&I Showroom: A Dealer's Guide to Compliant Paperwork
National Independent Automobile Dealers Association: Dealership Compliance
Vanguard Dealer Services is an automotive consulting company offering full service consulting, dealership training, and F&I products and services. With the help of a highly knowledgeable and experienced staff, Vanguard effectively analyzes dealerships and identifies profitable opportunities. While still offering an individual customer service experience, Vanguard is recognized as the largest agency in the country. For more information or to speak with a representative directly, please feel free to contact us.