Randy Felice of A&S Motorcycles talks Sales & Advertising Compliance - Episode 39

Randy joined me for the 3rd of 3 sessions discussing some intricate points that he, as a California dealership, is accountable for to state and federal regulatory agencies. This is a session that may have some of you who are not in a role where these compliance items are part of your day to day, let's say... it may have you sort of "glaze over!" But, if you aspire to be in a management role at a dealership or you are today, listen up - the level of onerousness that compliance has come to in some states (and likely many more/all over time) is high. If you plan to play in the sell fun powersports or RV business you'll want to bookmark the 3 Randy Felice episodes for a later reflection.  As mentioned at least once, Randy is not a lawyer. I also, am not a lawyer. We are having this discussion to show how immense the expectations are on you as a dealership, thru the perspective of a motorcycle dealership (Randy's) operating in California.  Randy has graciously offered up his email to answer questions directly about any of these topics: [email protected] ***********************************   Some notes from the session: A culture of compliance in the sales department Advertising https://www.paa.org/Files/NADAAdGuide.pdf Use your manufacturers verbiage only for rates and payment Nothing is "free" when required to purchase something ...it's "included" Illegal lotteries Properly advertising rebates Bait and switch Bird dogging Certified pre-owned (CPO) should not look like or imply from manufacturer unless it is Fuel economy claims Pricing, fees Hang tags Sales Contract Law Military lending act - no gap OFAC Office of Foreign Assets Control 10,000 cash form Liability insurance if required in your state. Privacy notice Statement of how a vehicle left your property, if no license How you state license and registration Offering all back end products to all customers Customer incentive acknowledgement Correct application of rebates Having a rate participation procedure so that there is no discrimination in how you mark up rate nada process https://www.nada.org/faircredit/ Accept application from anyone who wants to apply Adverse action form if turned down or not rate expecting. Out of state sales license and sales tax Customer information security Recently dealership in CA was fined over 100,000 $3500 per sheet of paper left out, income, drivers license, social... just to be careful protect everything. Lock up servers Screen savers with passwords Do not write down credit card info Safes near desks sales deals locked up, need to know access, password security, drop box or fax machine secure information transfer, careful use of email Random desk inspections Red flag laws... identity theft purchasing bikes The ITPP Compliance Officer is responsible for and has been assigned specific responsibility for oversight, development, implementation, administration, and approval of material changes to the Dealership’s Identity Theft Prevention Program (“ITPP”) Credit applications through secure source, do not fill for the customer, must have DL before submitting. ****************************  Please help me expand these conversations by sharing this podcast in any way you can. I sincerely appreciate it! Dealership fiXit exists to help dealerships tap into high performance ideas!