Furthermore, the FTC identifies the following as not being “express, informed consent”: 1. A signed or initialed document by itself; 2. Pre-checked boxes; or 3. An agreement obtained through any practice designed or manipulated with the substantial effect of subverting or impairing user autonomy, decision-making or choice (which sounds eerily similar to “dark patterns” as it is related to consumer privacy choices). Though not explicitly stated in the regulations, we believe that this will require you to provide the customer with an additional disclosure form that they must acknowledge and sign. We will cover that in more detail in an upcoming article. RECORDKEEPING For 24 months, dealers must create and retain copies of the following: 1. Copies of all materially different advertisements, sales scripts, training materials and marketing materials regarding the price, financing or lease of a vehicle; 2. Copies of all purchase orders, financing and lease documents signed by the consumer (whether you sold a vehicle or not); 3. All written communications relating to sales, financing or lease between you and any consumer in which you sold or leased a vehicle. Another question we regularly saw during our live webinar was whether text and email communications between a salesperson and a customer, in which a vehicle was sold, needed to be retained for 24 months. The answer is “yes,” and we recommend that you train your staff to use software that tracks and records this electronic communication. OUTLOOK Though the regulation itself spans only 12 pages (with over 358 pages of comments), the ramifications to the industry are significant and very complex, but that’s why we’re here. Led by dealers and industry compliance experts, ComplyAuto has been preparing a solution for the CARS Rule since 2020 called “Guardian,” which was announced at the NADA Convention in Las Vegas on Feb. 3. Scan the QR code to sign up to receive updates. https://complyauto.com/guardian-coming-soon/ As the FTC continues to receive commentary about the CARS Rule and ratchets up enforcement in other areas of the automotive industry, ComplyAuto intends to remain the nation’s leading automotive compliance software solution by bringing you the latest information that affects your dealership. This article is intended to be for INFORMATIONAL PURPOSES ONLY and is NOT to be construed as legal advice. For over 100 years, we’ve helped dealers like you serve your customers by providing the best-in-class products and services you need – and by remaining true to the automotive passion we share. With nearly 5,000 specialists dedicated to supporting dealer financial services, we can help you gain efficiencies, increase your product offerings, and work to improve per vehicle revenue. Let us help you unlock new levels of growth at your dealership. We’re all better off with an ally. Contact your local Account Executive or call 888-919-2559 to get started. $46 billion in consumer auto originations in 2022 Over 32,000 vehicles listed daily on SmartAuction A leading F&I provider What we offer. Retail finance Commercial finance F&I Remarketing Wholesale inventory finance Dealer loans exponenti Congrats, Reggie Willis! 19
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