Houston Independent Automobile Dealers Association November Issue: Harvey's Still at Play | Page 20

The CARLAWYER ©
By Thomas B. Hudson and Nicole F. Munro
Here’s our monthly article on legal developments in the auto sales, finance and lease world. This
month, we’re covering actions of the Consumer Financial Protection Bureau, the Federal Trade
Commission and the Justice Department. As usual, this month’s article features our “Case of the
Month” as well as several CFPB actions.
Why do we include items from other states? We want to show you legal developments and trends. Also,
another state’s laws might be a lot like your state’s laws. If attorneys general or plaintiffs’ lawyers are
pursuing particular types of claims in other states, those claims might soon appear in your state.

Note that this column does not offer legal advice. Always check with your lawyer to learn how what we
report might apply to you, or if you have questions.

This Month’s CARLAWYER© Compliance Tip

Consider an advertising checkup. Both federal and state enforcement agencies are zeroed in on ads like
never before. The level of compliance by dealers with the ad laws and regulations is so low that ad
claims are really low-hanging fruit. The claims are also very easy to prove – no “he said, she said”
involved, just present the court with the ad and the law and the case is over. The monetary penalties
for ad violations can be high, and it isn’t unusual for at least the federal agencies to require years of
expensive ad monitoring as a condition of settling cases. Some prevention could go a long way.
Federal Developments
“Small Entities,” Listen Up! On September 18, the CFPB published a Small Entity Compliance Guide to
support implementation of the recently issued Arbitration Agreements Rule. The guide is available on
the CFPB’s dedicated arbitration implementation webpage.
FAQ Help from the FTC. On September 26, in response to a request from the National Automobile
Dealers Association, the FTC issued guidance to auto dealers answering frequently asked questions
about compliance with the revised Used Car Rule and the revised Buyers Guide. The FTC revised the
Used Car Rule in November 2016. The guidance notes that additional information about complying with
the Used Car Rule can be found in the FTC’s Dealer’s Guide to the Used Car Rule
(https://www.ftc.gov/tips-advice/business-center/guidance/dealers-guide-used-car-rule) and by visiting
the FTC’s webpage for auto dealers.
Ten-hut! On September 25, the FTC launched a web page highlighting its new Military Task Force, aimed
at identifying the needs of military consumers and developing initiatives to empower servicemembers,
veterans, and their families, including through law enforcement actions. The Task Force, a cross-section
of agency representatives, is part of the FTC’s effort to provide resources for the military community. In
2016, there were more than 100,000 consumer complaints from servicemembers, their dependents,
military retirees and veterans, according to the FTC’s data. About two-thirds of the complaints were