The administrative challenge brought by the National Automobile Dealers Association (NADA) and another trade association against the Combating Auto Retail Scams (“CARS”) Trade Regulation Rule, issued last year by the Federal...more
8/22/2024
/ Automotive Industry ,
Automotive Loans ,
Car Dealerships ,
CARS Rule ,
Commercial Litigation ,
Dodd-Frank ,
Federal Trade Commission (FTC) ,
Financial Services Industry ,
FTC Act ,
Motor Vehicles ,
Rulemaking Process ,
State Attorneys General ,
Unfair or Deceptive Trade Practices
On Thursday, August 15, 2024, the Federal Trade Commission (FTC) and Arizona Attorney General announced a $2.6 million settlement to resolve claims that Coulter Motor Company used deceptive online advertising to lure...more
8/20/2024
/ Automotive Industry ,
Automotive Loans ,
Car Dealerships ,
CARS Rule ,
Commercial Litigation ,
Consumer Fraud ,
Enforcement Actions ,
Federal Trade Commission (FTC) ,
FTC Act ,
State Attorneys General ,
Unfair or Deceptive Trade Practices
On January 18, 2024, the Federal Trade Commission (FTC) announced it was staying the effective date of its Combating Auto Retail Scams Trade Regulation Rule (the “CARS Rule”) pending resolution of an administrative challenge...more
On Friday, December 22, 2023, FCA US LLC, the manufacturer of Chrysler, Jeep, Dodge, Ram vehicles, among others, scored the latest in a series of victories for automakers over claims by consumers that “destination charges”...more
1/8/2024
/ Actual Delivery ,
Automotive Industry ,
Car Dealerships ,
Critical Infrastructure Sectors ,
Manufacturers ,
Motor Vehicles ,
OEM ,
Putative Class Actions ,
Regulatory Violations ,
Retail Market ,
Service Charges ,
Supply Chain
After more than a year of review, the Federal Trade Commission (FTC) on December 12, 2023 launched its much-anticipated final rule targeting misleading advertising and sales tactics by new car dealers. First proposed in the...more
12/14/2023
/ Advertising ,
Auto Lease ,
Automotive Industry ,
Car Dealerships ,
Consumer Contracts ,
Electric Vehicles ,
Federal Trade Commission (FTC) ,
Fees ,
Final Rules ,
Financial Services Industry ,
Hidden Fees ,
Material Misrepresentation ,
Motor Vehicles ,
Regulatory Reform ,
Retail Sales
The Ninth Circuit recently affirmed the dismissal of a putative consumer class action challenging a manufacturer’s “destination charge” as an undisclosed and deceptive “vessel for profit” in violation of California and New...more
On October 18, 2022, the Federal Trade Commission (FTC) announced a settlement resolving allegations that Passport Automotive Group, a Maryland-based automobile dealer group, packed junk fees into the cost of the vehicles it...more
The Federal Trade Commission (FTC) received dozens of submissions from dealer trade associations, other industry participants, and members of Congress opposing the FTC’s proposed rules for dealers in connection with the...more
The Federal Trade Commission (FTC) on August 23, 2022 announced that it has decided by a vote of 5-0 to decline requests to extend the public comment period for proposed rules for dealers in connection with the advertising...more
On June 23, 2022, the Federal Trade Commission (FTC) announced that it has initiated the process to adopt regulations for dealers in connection with the advertising and sale of new cars. The proposed rules target “[d]ealer...more
April Fool’s Day this year was no joke for a prominent dealer ownership group with locations in the Midwest and Southeast United States. On Friday, April 1, 2022, the Federal Trade Commission (FTC) and Illinois Attorney...more
On Monday, October 25, the Ninth Circuit Court of Appeals issued its long-awaited decision in the case brought by the two leading US providers of dealership management systems (“DMS”), CDK Global and Reynolds & Reynolds, to...more
An Arizona federal court recently rebuffed efforts by the two leading US providers of dealership management systems (“DMS”), CDK Global and Reynolds & Reynolds, to enjoin the enforcement of amendments to the Arizona dealer...more
The COVID-19 pandemic has forced automobile dealers to increase their emphasis on digital sales as customers demand greater convenience and less physical contact with dealership personnel. ...more
Overshadowed by the outbreak of the COVID-19 pandemic, Tesla in early March quietly racked up another win that will allow it to continue the direct sale of new motor vehicles to consumers in Virginia. On March 3, 2020, the...more
7/8/2020
/ Appeals ,
Automotive Industry ,
Business Ownership ,
Car Dealerships ,
Direct to Consumer Sales ,
DMV ,
Elon Musk ,
Manufacturers ,
Representational Standing ,
Standing ,
Tesla ,
Trade Associations
On Wednesday, May 20, 2020, an Arizona federal district court judge issued a long-awaited order on motions to dismiss a complaint filed by CDK Global LLC (CDK) and Reynolds & Reynolds Company (Reynolds) challenging amendments...more
5/28/2020
/ Car Dealerships ,
Commerce Clause ,
Computer Fraud and Abuse Act (CFAA) ,
Contracts Clause ,
Data Management ,
Data Protection ,
Data Security ,
Defend Trade Secrets Act (DTSA) ,
DMCA ,
Due Process ,
First Amendment ,
Gramm-Leach-Blilely Act ,
Personally Identifiable Information ,
Preemption ,
Takings Clause
Seyfarth's Future of Automotive Series -
On March 23, 2020, Colorado Governor Jared Polis signed into law S.B. 20-167, which amends that state’s dealer statute to allow some electric vehicle manufacturers to own, operate,...more
On March 23, 2020, Colorado Governor Jared Polis signed into law S.B. 20-167, which amends that state’s dealer statute to allow some electric vehicle manufacturers to own, operate, and control motor vehicle dealerships in...more
Acknowledging that “[c]onsumers are clamoring for the opportunity to purchase the vehicles of their choice online because it expands the options available and enables them to save a considerable amount of time and possibly...more
3/4/2020
/ Best Practices ,
Car Dealerships ,
Disclosure Requirements ,
E-Commerce ,
Internet ,
Internet Retailers ,
Manufacturers ,
Motor Vehicles ,
Online Advertisements ,
Online Platforms ,
Regulatory Oversight ,
Regulatory Requirements ,
Retail Market ,
Websites
On October 12, 2019, California governor Gavin Newsom signed into law Assembly Bill 179 (A.B. 179), a bill that will make significant changes to the warranty reimbursement provisions of the California Vehicle Code effective...more
10/23/2019
/ Adverse Action ,
Auto Repair Regulations ,
Automotive Industry ,
Car Dealerships ,
Data Management ,
Distributors ,
Export Controls ,
Fair Compensation ,
Manufacturers ,
Motor Vehicles ,
New Legislation ,
Reimbursements ,
Repairs ,
Sales & Distribution Agreements ,
Service Contracts ,
State and Local Government ,
State Bans ,
Surcharges ,
Vehicle Code ,
Warranties ,
Wholesale
The two leading Dealer Management System (“DMS”) providers in the United States—CDK Global, LLC (“CDK”) and The Reynolds & Reynolds Company (“Reynolds”)—have filed suit in federal court in Arizona seeking to block an...more
As competition intensifies and auto manufacturers and distributors look for new ways to realize value from their brands, they and their counsel would do well to familiarize themselves with the Federal Trade Commission’s (FTC)...more
7/9/2019
/ Amended Rules ,
Automotive Industry ,
Business Opportunities ,
Car Dealerships ,
Federal Trade Commission (FTC) ,
Franchise Disclosure Document ,
Franchise Laws ,
Franchisee ,
Franchisors ,
FTC Franchise Rule ,
Manufacturers ,
Risk Assessment ,
Risk Mitigation