MADA holds legislative, legal, and regulatory briefing for Maryland dealers across the state

MADA holds legislative, legal, and regulatory briefing for Maryland dealers across the state

Maryland dealers from the D.C. suburbs attended the Gaithersburg session of a briefing MADA is taking across the state related to legislation passed into law by the 2011 General Assembly impacting the automobile business. Additionally, the briefing included an overview of state and federal regulatory developments and a discussion of hot button legal issues of importance to dealers.

Joining MADA CEO and lawyer Peter Kitzmiller, was dealer lawyer and WANADA Kindred line member Mike Charapp, who together presented the material.

Topping the list of new laws passed by the General Assembly was the cap increase in the processing fee dealers can charge car buyers to handle vehicle purchase paperwork rising from $100 to $200 this July, with an elevator from $200 to $300 in 2014. The briefing focused upon the various disclosure requirements dealers charging the fee must comply with by state law.

In the legal report, dealers were alerted to the threat of class action lawsuits brought by plaintiffs lawyers against dealers for a variety of dealer missteps in violation of consumer protection and workplace law. Specific areas referenced were the Maryland laws mandating dealer disclosure of prior use to used car buyers and damage, body or mechanical, to new car buyers.

In the regulatory realm, the briefing provided an important review of dealer obligations under the FTC Used Car Rule with regard to window sticker postings, the state and federal requirements on what must be disclosed to buyers on the sale of demonstrators, requirements of dealer advertised disclaiming freight charges from the advertised price, disclosure requirements in vehicle transactions where negative equity is involved and Truth-in-Lending requirements.

Dealers were also alerted to the upcoming car business scrutiny by the FTC pursuant to the passage of the new Finance Reform law that will not include dealers in the regulatory scheme of the soon to be formed Bureau of Consumer Finance Protection (BCFP).

General advice on dealers taking full advantage of state franchise protection laws was dispensed as well, rounding out a legal and regulatory briefing for dealers that was as comprehensive as it was timely and useful. Covered, too, was the shift in federal policy by the Department of Labor away from the overtime pay exemption for service advisors to include the steps dealers can take to keep service advisors exempt along with vehicle sales representatives and vehicle repair technicians.

WANADA works shoulder to shoulder with MADA as well as VADA and NADA on the development of and compliance with statutes and regulations impacting dealers at the federal and state level and appreciates the good work of the associations government relations advisors Rifkin, Livingston, Levitan and Silver on Maryland matters and Charapp and Weiss on Virginia matters.