Wondering if someone might fine one of your Ads unfair or deceptive?
Ask yourself the following, its what the FTC would consider:
1. Is it likely to mislead consumers acting reasonably under the circumstances.
2. Does it omit ”material” information to a consumer’s decision to buy or use the product.
3. Does it cause or is it likely to cause substantial consumer injury.
If your answer is yes to any of the 3 questions, you have a bad ad!

Question:  I was reading one of your posts on Auttr.com and learned that whenever I advertise, any and all material limitations or exclusions must be disclosed in a clear and conspicuous fashion.  Can you give me a few pointers as to what this might mean on my website?

Answer:  Putting this into practice on your website, consider try the following:

Place disclosures near, and wherever possible, on the same screen as the claim.

Use text or visual cues to prompt disclosure review.

With hyperlink use, make the link obvious.

Include complete disclosures on click thru pages.

Make disclosures on banner ads or the page to which the banner ad links.

Repeat disclosures on lengthy ads.

Question:  I want to emphasize the importance of compliance to my employees, but it’s hard to explain.  Can you help me with the message?

Answer:  When explaining compliance, it has to be more than just a word.  Tell them your goal is to have your dealership’s paperwork, policies, practices and procedures all in accordance with the law.  They must recognize that compliance is an ongoing process that must be monitored, updated and managed.  Lastly, to be effective, your people, paperwork and automated systems must work together.

Question:  Keith: In your Car Counselors TARP presentation at the 2010 NIADA Convention you discussed some suggestions for a successful Dealer – Lender/Vendor relationship, would you please summarize them for me?

Answer:  Sure thing, here they are:

Get each parties expectations on the table

žUnderstand each other’s business

žKnow what “correct paperwork” looks like

žDecide what a “complete deal” means

žEstablish a framework for handling “stips”

žCommunicate loan/deal criteria and how to handle changes

žBe consistent (understand look to book and debt to income)

žRemember it’s a partnership!

A quick thought about determining whether a dealership advertisement is unfair or deceptive: Often times, what an advertisement does NOT say is as important as what it does!

Be sure not to miss “The Internet: Your Virtual Showroom” Panel I will be moderating at the 2010 NIADA Convention on Thursday morning from 8 to 9:30 AM.  My panel of industry experts Michael Page (cars.com), Howard Polirer (AutoTrader.com) and Amanda Savage (Manheim Online Solutions) will tell you the secrets you need to know about creating your own virtual showroom and maximizing your Internet presence.

You won’t want to miss the “Social Media and Networking” Panel discussion I will be moderating at the 2010 NIADA Convention on Wednesday morning from 8 to 9:30 AM.  We have an outstanding panel with a wealth of knowledge to pass on to you.  Be sure to attend and hear what Philip Zelinger (Ad Agency Online), Jody Devere  (Askpatty.com), Ken Gibson  (Gibson Internet Marketing and Consulting) and Don Walker  (Walker Investments) have to say on this important topic!

Thank you to all of those who attended the Opening Session of the 2010 NIADA Convention and for the kind words you have said about the session.

Keith, we watched your recent Car Counselor’s TARP Program on Auttr and heard you speak of a document that you would use instead of a “we owe” to list items owed to the customer that would better protect the dealer.  Can you explain this a little further for me?

The document I was referring to is a Delivery Confirmation, which is used to bring closure to a motor vehicle transaction.  Remembering that State Unfair and Deceptive Acts and Practices (UDAP) Statutes generally require that all material statements, representations or promises must be integrated into the written sales or lease agreement, the Delivery Confirmation provides the dealership with a final opportunity to record any promises made to the customer and to confirm that no other promises were made other than those set forth in the Retail Purchase Agreement or Retail Lease Agreement and the Delivery Confirmation. Read the rest of this entry →

Keith:  All the press around the Toyota recalls got me thinking about a car I sold with a crack in the windshield. My shop assures me that it is safe but someone in the customer’s family is telling her that I broke the law by selling the car that way. I want do the right thing, but a new windshield is very expensive and as long as I am not breaking the law I would like to avoid replacing it. Am I in trouble?

Answer:  It is against the law to sell a vehicle when a safety item, such as a windshield, is not in working order. While your shop says the windshield is safe (and I am not doubting they are right, although you used the word “crack” as opposed to chip to describe the defect in the windshield, which may suggest otherwise) the customer (or members of her family) believes you are doing something wrong. That often times will wind up leading to other problems with that customer down the road. I would offer to replace the windshield and, perhaps, split the cost with her, thus avoiding the likely problem with this customer in the future. If it is a recent sale, you could also unwind the deal if it comes to that. In any case, if you pay for all or part of the windshield repair remember to use a Goodwill Repair Form and if you unwind the deal to get a Release of Claims signed (an example of one can be found here on Auttr). Unfortunately, in our business you can do everything right and still wind up with an unhappy customer, often the result of them being misinformed.