Pub. 13 2023 Issue 4

Counselor’s Corner Dealerships have been considering the use of video and audio recording of vehicle purchase or lease transactions to enhance customer service and security, as well as to mitigate potential disputes. Before implementing any such recording practices, it is essential to understand the legal complexities under state and federal law underlying this issue. As a general rule under Illinois or federal law, it is unlawful to record a telephone call or private conversation in which you are not a party and do not have a party’s consent. Additionally, the federal wiretap law prohibits placing a recording device on a person or telephone, in an office or elsewhere to secretly record a conversation between two persons who have not consented. Illinois has some of the strictest laws in the country pertaining to audio and video recording. Under the Illinois eavesdropping law, contained within the Illinois Criminal Code (720 ILCS 5/14-1 et seq.), there are specific provisions and requirements relating to recording conversations. A significant provision under Illinois’ eavesdropping statute is the two-party consent requirement. That is, all parties to the recorded conversation or transaction must know about and permit the recording party to record, and consent to being recorded. In a vehicle transaction, this would typically include the customer and dealership personnel. Thus, if a party is not notified of, or consented to, the recording, a violation of this statute has occurred. The form of notification should be clear and conspicuous whether through signage, written disclosures, or recorded message on a telephone call. And as with any form of written consent, it should be expressly granted, informed, and clear and conspicuous. A violation of this law is a felony. Injured parties are also entitled to civil remedies, including injunctive relief and actual and punitive damages. In addition to the requirement of obtaining the customer’s informed consent prior to recording, questions also arise concerning whether dealership employees can be recorded by the dealership, including as part of a customer transaction, without the employee’s individual prior consent, and whether the employee can be required to consent as a condition of employment. These are important legal considerations that each dealership should discuss with their private attorney as a number of issues, including privacy, labor and dealership agency, must be evaluated. Legal Pitfalls of Recording Vehicle Purchase or Lease Transactions JULIE CARDOSI Law Office of Julie A. Cardosi, P.C. 8 Illinois Automobile Dealer News

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