The Federal Trade Commission’s 97 warning letters sent to automobile dealers for potential advertising and sales violations put the industry on notice in March.
With questions lingering about future enforcement and compliance in the wake of those warning letters, the FTC will appear in an exclusive NIADA webinar this month. A senior official with the agency will appear with NIADA Director of Government Relations and Compliance Patrick O’Brien to address the letters and compliance under Section 5 of the Federal Trade Commission Act at 2 p.m. April 21.
Dealers are urged to register here.
Section 5 prohibits unfair or deceptive acts or practices (UDAP) in commerce and gives the FTC authority to investigate and enforce violations across many industries, including automotive sales. For used car dealers, Section 5 primarily focuses on ensuring that advertising, pricing and sales practices are truthful and transparent. A practice is considered deceptive if it misleads or is likely to mislead a consumer and affects the consumer’s purchasing decision.
Along with addressing Section 5, the webinar will include an overview of the FTC’s Safeguards Rule, under which automobile dealers must develop and implement a plan to protect customer information from breaches and unauthorized access.
