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FTC Action Pushes AZ and NM Auto Dealer Group Out of Business

In a first for the FTC, the Tate Automotive Group, with dealerships in AZ and NM, is being forced to cease business operations as part of a settlement of allegations related to falsification of consumer income. A link to...more

FTC Crackdown on "COVID-19 Stimulus" Advertising

The Federal Trade Commission recently filed a lawsuit against Traffic Jam Events, LLC and its owner, David J. Jeansonne to halt an alleged scheme to deceive consumers with mailers supposedly directing them how to obtain...more

FTC Publishes Reports on Auto Sales Practices

On July 30, 2020, the FTC announced two new staff reports which highlight some of the alleged challenges and confusion consumers claim they face in buying and financing a car, particularly relating to charges for add-on items...more

Vehicle Dealership Operations Protocol for COVID-19

At the request of the California New Car Dealers Association (CNCDA), we prepared a COVID-19 Operations Protocol to be used by California dealerships that are open or will soon be re-opening, for vehicle sales. On April 24,...more

Auto Sales Remain Subject to State and Local Orders Despite Designation as Essential by CISA

On April 17, 2020, the US Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) issued revised Guidance on the Essential Critical Infrastructure Workforce: Ensuring Community and National...more

CNCDA Issues Updated Best Practices Memo for Online Sales

The California New Car Dealers Association has requested a memo regarding online vehicle sales, home delivery and remote work for vehicle salespersons. Below is our executive summary followed by a brief discussion. I....more

No Change To PPP for Dealers Submitting with Franchise Identifier Codes

The SBA has released additional guidance regarding the application of certain affiliate rules applicable to the PPP. Any dealership with 500 or fewer employees is eligible to apply for a PPP loan. However, even if you are a...more

Impact of State and Local Orders on California Car Dealers and Repair Facilities

Recent state and local executive orders limit or suspend many operations of California dealers and repair facilities. This alert summarizes the effects and penalties of recent orders, which are changing daily. All...more

The CARES Act: Considerations for Auto Dealerships During COVID-19 Pandemic

...CARES Act - Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which included the Paycheck Protection Program (PPP) for small businesses. The PPP provides short-term cash flow assistance...more

CA Supreme Court: Employees Cannot Bring Claims for Unpaid Wages Under PAGA

In resolving a growing split among California courts, the California Supreme Court in ZB, N.A. v. Superior Court faced the issue of whether actions for unpaid wages under Labor Code section 558 brought under the Private...more

FTC Reminds Auto Dealer Vendor to Slow Down & Consider Security

The Federal Trade Commission (FTC) recently released updated data security guidance in connection with a proposed settlement with LightYear Dealer Technologies, LLC (dba DealerBuilt), a service provider for the auto dealer...more

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