NADA DIRECTOR’S MESSAGE MATT LAUGHRIDGE Director, NADA Here’s the latest from NADA: CIPA DEMAND LETTERS In recent months, plaintiffs’ attorneys have stepped up efforts to send demand letters and file lawsuits against dealerships, alleging that website tracking tools — such as cookies and pixels — collect and share visitor activity in violation of federal and state wiretapping laws, most commonly the California Invasion of Privacy Act (CIPA). As part of this growing wave of CIPA claims, the U.S. District Court for the Central District of California recently designated one of the most active plaintiffs, Vivek Shah, a “vexatious litigant,” meaning he must get court approval before filing future CIPA claims in that court. Dealerships use website tracking tools to improve website performance, personalize the customer experience and support features like chat platforms. Demand letters often seek quick settlements to avoid litigation, although plaintiffs continue to file lawsuits against businesses, including dealerships. While recent court decisions may limit some repeat claims, they do not prevent new lawsuits from being filed. Dealerships cannot stop demand letters from being sent or lawsuits from being filed, even when claims may lack merit. But dealerships can reduce risk by using cookie consent banners that block tracking until a consumer opts in and by ensuring their privacy policies clearly explain what tracking technologies are used and what information is shared with third parties. Dealers are encouraged to consult their legal counsel regarding any legal dispute and utilize NADA’s guidance in its “Best Practices for Tracking Consumer Website Activity” guide, accessible by scanning the QR code. https://www.nada.org/ media/17801/download?inline CHINESE OEMS’ ENTRY INTO THE U.S. AUTO MARKET Last month, the Senate Commerce Committee unanimously advanced S. 4429, the “Connected Vehicle Security Act of 2026” (CVSA), sponsored by Sens. Bernie Moreno (R-Ohio) and Elissa Slotkin (D-Mich.). Chinese vehicles being imported to, or potentially manufactured in, the U.S. pose a growing risk to dealers, incumbent OEMs, workers, and U.S. economic and national security. The bipartisan bill would prohibit the import, manufacture, sale, and resale of connected vehicles and certain connected vehicle hardware and software from China and other foreign adversaries. It also bars vehicles produced by entities owned or controlled by, or operating as joint ventures with, those foreign adversaries. NADA is reviewing the potential impact of the CVSA’s ownership provisions on dealers representing automakers with significant Chinese investments, such as Volvo and Mercedes-Benz. NADA has also held high-level meetings with the National Security Council, the Department of Commerce, the Department of the Treasury, and the U.S. Trade Representative to express our support for maintaining barriers to Chinese OEMs selling vehicles in the U.S. NADA strongly supports the CVSA’s policy goals and will continue working with lawmakers to protect dealers and American jobs while minimizing unintended consequences as the legislation advances. COURT GRANTS NADA’S MOTION TO INTERVENE IN CRA LAWSUIT In July the U.S. Ninth Circuit Court of Appeals allowed NADA and the Alliance for Automotive Innovation to intervene on the side of the Environmental Protection Agency NADA Notes THE GENERATOR 6
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