Regulatory News & Updates
FTC Again Delays Enforcement of Red Flags Rule
On Oct. 30, the Federal Trade Commission announced that it is delaying its enforcement of the Red Flags Rule until June 1, 2010. For more information, see the FTC Press Release at http://www.ftc.gov/opa/2009/10/redflags.shtm.
All NADA members have received a copy of A Dealer Guide To The Red Flags and Address Discrepancy Rules; Protecting Against Identity Theft. In addition, NADA also has produced several virtual seminars on the topic, including Complying With the New FTC Red Flags Rule and, with the FTC, A Deeper Dive into the FTC Red Flags Rule.
For more information, watch the NADA video, “Identity Theft,” here.
2010 Annual Fuel Economy Guide Now Available
Dealers have a legal responsibility to provide the guide to customers upon request
Unveiling the 2010 Fuel Economy Guide this week, the U.S. Department of Energy and U.S. EPA are seeking help from dealers to provide their customers with information about fuel economy and the benefits of driving more fuel-efficient vehicles. The guide gives consumers important information about estimated fuel costs and mileage standards for model year 2010 vehicles. The guide is also available to mobile users (fueleconomy.gov/m), and is readily accessible from a mobile device, smart phone, or personal digital assistant. Click here for the EPA/DOE letter detailing the legal responsibility of dealers to make the guide available to customers.
There are a number of options available for dealers to meet these requirements. First, EPA/DOE will electronically distribute the guide to dealers. To meet regulatory obligations to display a booklet and to provide a booklet to customers upon request, dealers can print the guide from either the electronic file, which will be emailed or available by download at www.fueleconomy.gov.
Alternatively, if access to the Internet is unavailable, dealers may order printed paper guides. Orders are currently being accepted and will be mailed, free of charge, by the end of November 2009. Click here to place an online order for paper guides. Printed copies also can be requested from DOE’s Information Center by calling (877) 337-3463 between 9 a.m. and 7 p.m. EDT. Click here for a form to order paper copies by mail.
Text Messaging: Regulations for Dealer Communications with Customers
Communications with prospective customers or others via “text messaging” may be subject to a number of federal regulations. The legal landscape covering text messaging was crafted before such technology existed. A text message may be deemed to be a phone call, an email, or perhaps even both under federal law. Read the issue summary here.
IRS Issues Alert on Tax Consequences of CARS Payments
The IRS Motor Vehicle Technical Advisor on July 31 issued an automotive alert on the federal tax consequences of CARS payments received by automobile dealers. To view the alert, click here.
SBA Moves to Include Floorplan Loans in 7(a) Program
The Small Business Administration on July 1 launched a pilot program to provide eligible dealers with government-backed lines of credit under its 7(a) loan guarantee program to finance their vehicle inventory. The program, which runs through September 30, 2010, provides a guarantee of up to 75 percent for as much as a $2 million loan for floorplan financing.
For more information, click here. And for questions, call Regulatory Affairs at 703.821.7040 or e-mail RegulatoryAffairs@nada.org.
LIFO Fact Sheet Available
The loss of LIFO (Last In First Out) for valuing inventory, either because of federal legislation or dealership termination, makes it imperative that dealers stay informed about potential changes and to plan ahead. A LIFO fact sheet is now available here.
WARN Act Requires Advance Notice of Layoffs
The Worker Adjustment and Retraining Notification (WARN) Act generally requires dealers with 100-plus employees to provide 60 days’ notice in advance of a mass layoff or closing. For more information, click here.
Stimulus Legislation Mandates Temporary COBRA Premium Relief
The American Recovery and Reinvestment Act of 2009 (ARRA) provides temporary, taxpayer-funded, premium relief for people otherwise eligible to elect to continue an employer's health plan coverage under the Consolidated Budget Reconciliation Act of 1985 — known as COBRA.
The Department of Labor (DOL) has issued model notices for employers to provide to Assistance Eligible Individuals (AEIs) and they may be obtained here.
For more information, click here. |
About NADA Regulatory Affairs
NADA’s Regulatory Affairs Group protects and promotes franchised car and truck dealership interests before the federal administrative agencies. Each year, Regulatory Affairs monitors and analyzes hundreds of federal regulatory issues and proposals, evaluating them for potential dealership impacts. Regulatory Affairs also helps to formulate NADA policy positions on those issues and, through written comments, testimony and, if necessary, legal action, advocates dealership interests before the federal agencies and judiciary.
The Regulatory Affairs Group coordinates its activities with NADA's Legislative Office on subjects of common concern, works closely with state and metro dealer associations, and regularly engages with other industry trade associations. Regulatory Affairs also prepares compliance-oriented guides, bulletins and articles and directly provides compliance advice to dealerships. For assistance, please call (703) 821-7040, fax (703) 448-5824 or email: regulatoryaffairs@nada.org.
Regulatory Guides and Bulletins
• Federal Stimulus Law Tax Provisions (February 2009)
• A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft (July 2008)
• The Federal Hazmat Transportation Regulations (May 2008)
• IRS Cost Segregation Audit Technique Guide (March 2008)
• A Dealer Guide to Adverse Action Notices (May 2007)
NADA Reference Materials
NADA & ATD Regulatory Compliance Chart (2nd Edition, 44 pp., available in both a print edition and as a downloadable PDF file)
Car and truck dealers need to know how federal rules and regulations apply to them. The NADA & ATD Regulatory Compliance Chart provides:
- An overview, with checklist, of federal rules that apply to car and truck dealerships, organized alphabetically by regulatory agency.
- A short summary of each rule.
- Sources for further compliance-oriented information for car and truck
dealerships that are available from NADA and various government
agencies.
To order, click here.
The Regulatory Maze: NADA's Annual Update on Federal Regulations (February 2009, 480KB PDF)
This annual AutoExec magazine article lists federal rules that apply to car and truck dealerships, organized by dealership department. To download, click here.
Regulatory Review
NADA's Regulatory Review tracks laws and regulations that affect dealers. It is mailed quarterly to state and metro dealer association executives and the NADA board of directors. Regulatory Review is produced by NADA Public Affairs in cooperation with NADA's Legal and Regulatory Affairs department.
Current and back issues (PDF format) may be accessed here.
Federal Agency Publications
The following are links to recent federal agency publications impacting NADA members, listed from newest to oldest:
Energy Stewardship Initiative
The partnership between NADA and EPA's ENERGY STAR program encourages greater energy efficiency at dealership facilities and operations. More information is available at www.nada.org/energystar.
Win recognition and awards for your energy savings here.
Find out more about how your dealership can "go green" at www.nada.org/green.
Regulatory Affairs on NADA-TV