The National Association of Motor Vehicle Boards and Commissions (“NAMVBC”) held its annual fall workshop from September 21-24, in Nashville, Tennessee. The three-day workshop featured panel discussions about electric vehicles, digital retailing, and other emerging issues confronting regulators and the motor vehicle industry. The workshop also included an update from the Federal Trade Commission (“FTC”) concerning the proposed Motor Vehicle Dealers Trade Regulation Rule.
EV sales and service were a common theme throughout the workshop, including discussions about EV infrastructure, distribution, strategies for sales, and the impact of state dealer statutes on each. Dealers and dealer associations reported that they are ready and willing to cooperate with manufacturers in the marketing, sale, and service of EVs, and that the transition from internal combustion engines (“ICE”) to EVs should have little, if any, impact upon current distribution models.
Other panels reported on increasing customer interest in digital retailing. A common refrain was that the pandemic accelerated manufacturers’ and dealers’ plans to incorporate digital retailing into sales strategies, including internet sales and contactless transactions. Panelists from various states motor vehicle boards offered insight into what regulations are being considered to permit and facilitate digital retailing in their respective states.
FTC attorney Sanya Shahrasbi was invited to the workshop to discuss the FTC’s Motor Vehicle Dealers Trade Regulation Rule, which proposes certain regulations concerning dealer advertising and sales of new vehicles. The proposed rule would prohibit new vehicle dealers from, among other things, misrepresenting the costs or terms of purchasing, financing, or leasing a vehicle and prohibits the sale of any add-on product or service that confers no benefit to the consumer. The proposed rule would also impose on dealers an affirmative disclosure obligation early in the negotiation process requiring that when a consumer and dealer communicate concerning a specific vehicle, the dealer disclose in its first written response to the consumer the offering price for the vehicle and obtain consumers’ express, informed consent for all charges. According to the FTC, these (and other) disclosure requirements would arm consumers with substantially more information about the prices actually available for vehicles and add-on expenses before consumers invest time in going to a dealership.
Ms. Shahrasbi explained that, given the volume of complaints the Commission receives related to the motor vehicle industry, it is vital that new regulations be adopted. The FTC is in the process of reviewing public comments on the proposed rule. Following that review, she told the attendees, the FTC will determine whether to implement the proposed regulations and, if so, in what form.
The workshop attracted more than 100 attendees from across the country, including representatives of state regulators, manufacturers, industry trade associations, and dealers. It was the first time since 2019 that the NAVMBC was able to hold its annual meeting in person. NAMVBC is a non-profit corporation formed to assist members in interpreting state laws and regulations relating to motor vehicle dealer licensing; according to its mission statement, NAMVBC is dedicated to “promoting fair, reasonable and uniform laws among the states with respect to the distribution and marketing of motor vehicles in order to prevent frauds and unfair business practices, and to promote and maintain a fair and sound system of distribution of motor vehicles to the public.”
