Virginia Dealer Board Focuses on Independent Dealers & Auto Ads
In some compliance discussions at its November meeting in Richmond, the Virginia Motor Vehicle Dealer Board (MVDB) and its committees took action on the following matters:
· The Dealer Practices Committee considered a number of cases brought by the Department of Motor Vehicles involving independent dealers who failed to maintain hours and required records, along with other violations of the Virginia Code.
· The Licensing Committee spent a substantial amount of time discussing proposed regulations for independent dealer operator continuing education. Independent dealer operators are required to take a course that covers legal and operating issues prior to obtaining a dealer license. The proposed regulations will impose continuing education requirements. These provisions do not apply to dealer operators of franchised motor vehicle dealers since franchisors already require substantial knowledge and experience for franchise dealership operators.
· The Advertising Committee considered an advertisement by a dealer which offered gas at reduced prices. This program was implemented through payment to a vehicle buyer when the sale was completed in an amount to cover the difference between posted gas prices and advertised prices. MVDB saw this as an improper rebate that is contrary to Virginia law. MVDB took no punitive action against the dealer recognizing there was no intent to violate the law.
The next meeting of MVDB is January 12, 2009 at DMV headquarters in Richmond, Virginia.
Download Bulletin PDF