With each new year, the automotive industry brings challenges, whether it’s the franchisor, employees, consumers or regulatory bodies. And with each new year, dealers have coped and met each challenge head-on. 2026 should not be much different in terms of challenges, but those challenges can be rewarding. Here are 26 issues to which you should give attention in 2026. FEDERAL AND STATE COMPLIANCE Dealers have become accustomed to federal oversight from any one of the numerous alphabet agencies. From advertising to sales practices to personnel treatment, a dealer must have in place a strong compliance program to operate in this regulatory climate. I-9 Audits With the Trump administration, it is imperative that dealers’ I-9 Forms are compliant. Dealers must follow the correct processes for completion of Forms I-9. Failing to give the employee the choice of documents to show identity and authorization to work can be the basis for a government enforcement action. Maintain Forms I-9 for the required time: for separated workers, one year after termination and three years after hire, whichever is longer. Spot check periodically to make sure you have a Form I-9. If not, follow up and have forms completed. Keep a note with each form completed after the required date to explain when and why the form was created. If there are errors, have a procedure to correct them. Employers can only correct Section 2 and Supplement B of the form, while employees must correct Section 1. Be sure the corrections are evident to avoid claims of wrongdoing. Pay Attention to Advertising Compliance Under the Trump administration, the FTC’s regulatory desires will be curbed, but the FTC’s enforcement activities will continue. Your staff in charge of ads and your ad agency must understand the rules. 1. In finance advertising, understand trigger terms and the requirement for follow-on disclosures. 2. Understand what the FTC considers bait and switch, and avoid those tactics by clear and conspicuous disclosures. Meaningful disclosures should be used to explain the terms and pricing, not negate the price. 3. When an ad appears too good to be true, it likely is. Regulators understand that. “Too good to be true” offers will attract regulatory attention. 4. If you are using third-party advertisers such as TrueCar or Cars.com, make sure those advertisements are the same as your website. Vehicle Shopping Rule Is Dead (For Now), but FTC Enforcement Is Not Dealers must sell the vehicle at the price advertised. Advertising a vehicle at a price at which the dealer does not intend to sell it is viewed by the agency as bait and switch — a cardinal sin. Bait and switch cannot be solved with a disclaimer that admits that you will not sell vehicles for the advertised price. Proper disclosures explain an advertised term, and they do not contradict or negate it. A statement that you will not honor the advertised price in the advertisement will be seen as an admission of a violation. Another cardinal sin, and one on the FTC’s radar, is requiring the customer to finance the vehicle or purchase a product to get the price advertised for the vehicle. For example, you cannot require the customer to buy GAP protection for the lower price you state you will sell the vehicle. Additional products and services, like extended service agreements and GAP protection, may be additional products purchased by the customer. Those products must be expressly agreed to with clear pricing and disclosures that the products are voluntary. Data Protection Will Continue To Be on the FTC and State AG Watch List This is a hot issue. Make sure your compliance efforts on mandated programs — the Privacy Rule and the Safeguards Rule — are in place and complied with. With the recent breach of 700Credit, it brought to light the need for compliance companies to ensure full compliance with the Safeguards Rule. The FTC’s views on add-ons differ greatly from dealers and even customers. To the FTC, the price of the vehicle is the only thing that matters. Anything else and the FTC is quick to characterize it as a “junk fee.” The FTC’s view is incorrect, and voluntary protection products, like extended service 8 Virginia Auto Dealer
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