Timely updates on legal issues affecting dealerships and other franchises.
On July 13, 2022, the Federal Trade Commission released a set of proposed regulations governing motor vehicle dealerships. The proposed regulations, which are open for public comment until September 12th, would affect how dealers advertise and sell motor vehicles and associated “add-on” products.
Manufacturers have received updated census tract information from the 2020 Census. As a result, the territories being assigned to dealers (which, depending on the manufacturer, are referred to as Primary Market Areas, Areas of Primary Responsibility, Dealer or Sales Localities, etc.) are being updated.
A record-setting money judgment from an auto lending case brought by the Federal Trade Commission (“FTC”) against the Ed Napleton Automotive Group reminds that careful sales practices related to add-on products has reputational, legal, and financial importance.