• DMV Actions: The DMV has the authority to suspend or revoke a dealership’s license for compliance failures. • Criminal and Other Penalties: In extreme cases, fines, injunctions and even criminal charges are possible. • Reputational Erosion: Misleading ads destroy customer trust and satisfaction, which are the lifeblood of a sustainable business. Action Plan for 2026 and Beyond To protect your dealership in this evolving environment, implement these three compliance strategies: 1. Establish Internal Accountability: Appoint a management-level employee to oversee and be personally accountable for all advertising law compliance. 2. Invest in Training: Ensure every employee involved in the creation or approval of advertisements is trained in current legal requirements. 3. Leverage Legal Counsel: There are many other advertising laws, and this article only scratches the surface. Work with experienced legal counsel to audit your existing materials, develop compliant advertising templates and provide a review of new campaigns. The California New Car Dealers Association also provides resources to help dealerships with legal compliance, including the California Auto Dealer Advertising Law Manual, authored by Manning, Leaver, Bruder & Berberich LLP. The author of this article is a partner at Manning, Leaver, Bruder & Berberich LLP, a Los Angeles law firm that practices throughout California and has been in existence for over 100 years. It has a strong automobile dealer practice covering all areas related to the automobile dealer industry, including dealership buy-sells, real estate transactions, business and consumer litigation, regulatory compliance, dealer advertising law, dealer association law, new motor vehicle board matters and franchise law. See www.manningleaver.com for more information and areas of practice. Nothing in this article may be considered as legal advice. Contact legal counsel for legal advice. 22
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