The past few years for dealers have been tumultuous and lacked certainty. From a pandemic to global supply chain constraints, to non-existing inventory, dealers have had to pivot, adapt and become more innovative. Now on the heel of all these uncertainties, manufacturers are increasingly adopting a tone that makes new franchise dealers feel even more uncertain about their future roles. And if this isn’t worrisome enough, the Federal Trade Commission proposed a sweeping new UDAP rule (unfair or deceptive acts or practices) that would impose a wide range of unwarranted new duties and restrictions on dealers. Keep in mind that this newly proposed UDAP rule is in addition to the Safeguards rule that is currently in place and all dealers nationwide must comply with it by Dec. 9, 2022. This article is not meant to scare you or be doom and gloom, I will leave that to the attorneys; however, this article is intended to make you aware of the challenges that we must be prepared to fight as a strong collective group through WVADA. Let’s start with the manufacturers and their incessant attempts of circumventing their dealer “partners.” On June 10, 2022, our new franchise law, H.B. 4560, became effective. WVADA has sent a letter to every manufacturer that does business in WV regarding reservation sales, subscriptions, and direct financing. We want to make sure every manufacturer is on notice and observing WV’s new franchise law. In addition, WVADA has sent letters to Ford, Volkswagen, and Subaru this month, regarding the new COVP Name Match Policy, the recent announcement of the Scout new line make, and Subaru’s Love Promise Pricing Pledge. Also, on behalf of our Lincoln dealers, WVADA filed a lawsuit against Ford Motor Company last week due to the 2020 and 2022 Lincoln Commitment Programs. The WVADA Board voted unanimously to fund the Lincoln Suit. Unfortunately, this suit may be one of many that WVADA chooses to support and fund. This is an absolutely crucial time for dealers to support WVADA and the legal defense fund! There is no doubt that we are stronger as a unified collective body. I will keep everyone updated as this suit progresses. Second, the FTC’s safeguards rule is in effect and dealers MUST comply with this federal requirement by December 9 of this year. This rule creates significant technical and administrative compliance requirements for dealers and Uncertainty will be the Fuel to Prepare and Protect Our Future President’s Message By Jared Wyrick Continued on page 8 wvcar.com 6 WVADA
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