NADA issues compliance guide on federal advertising rules
NADA issued a new publication at the convention that is designed to help dealers comply with federal advertising requirements on the sales, financing and leasing of automotive products and services.
A Dealer Guide to Federal Advertising Requirements provides examples of bad ads and good ads and chapters on 41 different federal advertising topics, such as the use of discount claims, email advertising, green marketing claims, Internet advertising, satisfaction guarantees and trigger terms.
The release of the guide coincides with recent intense scrutiny by the Federal Trade Commission of dealer compliance with federal advertising standards. Since 2012, the FTC has initiated five separate rounds of advertising violation actions, including actions against three dealers last December.
The guide does not address additional advertising requirements that may be imposed at the state or local level, which vary considerably and need to be fully addressed when dealer ads are reviewed for legal compliance, said Paul Metrey, NADA chief regulatory counsel. Dealers should consult with their legal counsel to make sure they comply with all their advertising responsibilities, he added.
The guide is part of NADAês Management Series, Driven. It is available at www.nada.org and will be included in the suite of compliance products at NADA University Online at www.nadauniversity.com.Download Bulletin PDF