This midyear 2021 review features the many major milestones achieved by the retail auto industry during the first half of 2021, including such highlights as:

  • The nation’s 16,658 franchised light-vehicle dealers sold 8.3 million light-duty vehicles.
  • Total light-vehicle dealership sales topped $600 billion.
  • Dealerships wrote more than 136 million repair orders, with service and parts sales totaling more than $60 billion. 


Steps to Make Dealership Websites Accessible (December 2019)
People with a variety of auditory, visual, physical and/or cognitive disabilities use assistive technology (e.g., screen readers, text enlargement tools, programs to control computers by voice) to enable computer use. According to the U.S. Department of Justice the Americans with Disabilities Act (ADA) applies to public-facing commercial websites; now is a good time for franchised dealerships to evaluate their websites for accessibility compliance. If a dealership’s website is not compatible with assistive technologies, disabled customers may not be able to shop for vehicles, make online parts purchases or learn more about what the dealership offers them. Web accessibility also boosts a dealership’s search engine optimization efforts and improves organic search rankings. In addition to losing potential sales, dealerships risk facing legal action. To date, plaintiffs across the country have asserted that websites for businesses, including dealerships, do not provide equal access under the ADA for persons with disabilities. These dealerships have often settled to prevent expensive litigation, making a commitment to improve website accessibility. Most public-facing dealership websites involve vehicle OEMS, website developers, vendors and other content providers; addressing dealership website accessibility is complex because each of these entities exerts control over, has responsibility for, manages and/or provides content to dealership websites. For more information on website accessibility see our recent FAQ.
Tags: General Management, Department of Justice (DOJ), Regulatory Affairs, Americans with Disability Act (ADA), Accessibility, Websites
2020 Fuel Economy Guide New Available (November 2019)
By law, dealers must provide the guide to customers upon request The U.S. Department of Energy and the Environmental Protection Agency have just released the 2020 Fuel Economy Guide. The guide provides detailed fuel economy estimates for model year 2020 light-duty vehicles, along with estimated annual fuel costs and other information for prospective purchasers. By law, dealers must display the guide and provide copies to customers upon request. Dealers can print copies to have on hand or provide access to the electronic version on a computer or electronic device in the new-vehicle display area. 2020 Fuel Economy Guide The 2020 Fuel Economy Guide will be published in an electronic (paperless) format only and will be updated periodically to include newly released vehicle models and current fuel cost estimates. On the government’s fuel economy website you can: • Download and print copies of the 2020 guide as needed. • Subscribe to an email list to be notified about the new fuel economy guide each year. • Download and print a sign alerting customers to the guide. (Displaying the sign is optional and not required by law.) An EPA/DOE letter for dealers details how to make the guide available to customers.
Tags: General Management, Environment Protection Agency (EPA), Department of Energy, Fuel Ecomony
DOL Issues Salary Changes to White Collar Overtime Exemptions (September 2019)
The U.S. Department of Labor is updating and revising the earnings thresholds necessary to exempt executive, administrative or professional employees (EAP or “white collar”) from the Fair Labor Standards Act’s overtime pay requirements. The final rule will be effective January 1, 2020. Employees who work more than 40 hours in a workweek but who meet both the salary and duties tests for an EAP exemption do not have to be paid the federal overtime premium of 1.5 times their regular rate of pay. The EAP exemption salary threshold is increasing from the current $23,660 to $35,568 per year (or from $455 to $684 per week). The DOL is allowing up to 10% of these salary thresholds to be satisfied by nondiscretionary bonuses or commissions. No changes were made to the EAP exemptions duties tests. The salary threshold for highly compensated employees (HCEs) also is being increased from the current $100,000 to $107,432 (there are no duties tests for HCEs). The new rule requires that HCEs receive at least $684 per week in salary, but the remainder of their compensation may be in the form of nondiscretionary bonuses or commissions. NADA is amending its Dealer Guide to Federal Wage and Hour, Child Labor and Wage Discrimination Compliance to reflect these new changes. Important: under federal law, it is possible for more than one overtime exemption to apply to a given employee and for certain state laws to restrict how federal overtime exemptions may be applied. For more information email
Tags: General Management, Human Resources, Department of Labor (DOL), Regulatory Affairs, Labor & Employment
NADA Highlights Adverse Effect of DOD’s Military Lending Act Interpretation (August 2019)
NADA sent a letter yesterday to the Acting Under Secretary of Defense for Personnel and Readiness providing additional data demonstrating that the Department of Defense’s inaction on industry petitions to withdraw DOD’s flawed interpretation of the Military Lending Act is continuing to harm service members. The data NADA presented is from a single finance source which ceased taking assignment of credit contracts with service members that included GAP Waiver soon after DOD issued its MLA interpretation in December 2017. Among the finance source’s service member customers, 310 have suffered a total loss of their vehicles without GAP Waiver protection and collectively owe $837,000. As NADA noted, this is data from only one of the hundreds of finance sources that serve members of the military. NADA reasserted its request that DOD “move expeditiously to withdraw the interpretation before additional harm is caused to the military community.” This is one of a series of coordinated actions NADA is taking to get DOD to move on this issue
Tags: F&I Department, Department of Defense (DOD), Regulatory Affairs
ABA Withdraws Resolution Targeting Dealer Financing (August 2019)
The American Bar Association (ABA) has withdrawn a resolution that would have urged governments at all levels to impose a series of duties and restrictions on dealer-assisted financing. NADA opposed the resolution and disseminated to ATAEs, members of the National Association of Dealer Counsel (NADC), and other trade associations talking points opposing it—along with a list of ABA delegates—requesting they express opposition to the ABA delegates in their respective states; the resulting communications were instrumental in prompting the withdrawal. This is the third time this resolution has been withdrawn. The ABA sections that proposed it (Civil Rights and Social Justice and State and Local Government Law) and the ABA section that opposed it (Business Law) will schedule a future meeting to make another effort at drafting a compromise resolution. NADA will remain engaged in this process.
Tags: F&I Department, Regulatory Affairs
Component 2 EEO-1 Survey Due by September 30, 2019 (July 2019)
For over 50 years, the U.S. Equal Employment Opportunity Commission’s (EEOC) has required dealerships with more than 100 employees to file annually an Employer Information Report (EEO-1 Survey). The EEO-1 historically has asked for the number of employees by sex, race, ethnicity and job category. Dealerships must also display an “EEO is the Law” poster. The EEO-1 Survey was expanded recently and is now more complex. Component 1 of EEO-1 still asks for the employee data listed above. The Component 1 EEO-1 Survey data for 2018 was due to the EEOC by May 31, 2019. The new Component 2 EEO-1 Survey asks for hours worked and W-2 pay information, by category. On July 15, 2019, the EEOC opened an online portal through which, by September 30, 2019, covered dealers must submit Component 2 EEO-1 Survey data for 2017 and 2018. Covered dealerships should be receiving portal system login information from the EEOC via USPS letter and email. The EEOC offers FAQs and supplemental materials to assist with submission of Component 2 data. Lastly, the EEOC offers help desk assistance at or 877.324.6214. Questions can also be directed to NADA Regulatory Affairs at
Tags: Human Resources, Department of Labor (DOL), Labor and Employment, Regulatory Affairs
FTC Enters Into Proposed Settlement with DMS Provider Over Alleged Data Breach (June 2019)
On June 12, 2019, DealerBuilt, of Mason City, Iowa, entered into a proposed settlement with the Federal Trade Commission for allegedly failing to properly encrypt sensitive data and conduct necessary vulnerability and penetration testing, the agency said in a statement. Please see NADA’s summary of the proposed settlement. We encourage you to review this summary with your IT professionals and legal counsel.
Tags: General Management, F&I, FTC, Privacy, Safeguards Rule, UDAAP, DMA, Data Breach, DealerBuilt
FTC Sues Businesses for Suppressing Consumer Reviews in Violation of New Federal Law (June 2019)
The Federal Trade Commission (FTC) has announced its first enforcement action pursuant to the recently-enacted federal Consumer Review Fairness Act (CRFA), suing three businesses and two business owners for allegedly violating the CRFA. The FTC alleges that the companies used form contracts that included clauses barring customers from sharing negative comments and demanded financial penalties (damages and attorney’s fees) against customers who did so. The businesses—including an HVAC contractor, flooring seller, and horseback riding company—have reached a preliminary agreement with the FTC to stop using the contract provisions and to inform their customers that the provisions cannot be enforced. The CFRA was enacted in 2017 and contains important new requirements that dealers should be aware of. For more information on CRFA compliance for dealerships, see NADA’s CRFA FAQ.
Tags: FTC, CFRA, Consumer Reviews
2018 EEOC Wage Data Due May 31, 2019, Additional 2018 and 2017 Data by September 30, 2019 (May 2019)
Dealers with 100 or more employees are subject to the U.S. Equal Employment Opportunity Commission’s (EEOC) EEO-1 Survey filing mandate. The EEOC enforces federal laws that make it illegal to discriminate against a job applicant’s or employee’s race, color, religion, sex, national origin, age, disability, or genetic information. The EEO-1 Survey for 2018 data is due by May 31, 2019. That EEO-1 filling must include the usual demographic data on race, gender, and ethnicity by job category. This information is now known as EEO-1 Survey “Component 1 data”. In addition, the Federal District Court for the District of Columbia recently ruled that additional data for calendar years 2018 and 2017 must be filed by September 30, 2019. Known as EEO-1 Survey “Component 2 data”, these additional filings must include employee W-2 wage and hours worked information set out in 12 specified pay bands. Important: the EEOC intends to open an EEO-1 portal for Component 2 data by mid-July at which time NADA will issue a member update. Last week, the U.S. Department of Justice filed a Notice of Appeal. However, since the District Court’s ruling has yet to be stayed, NADA suggests that for now EEO-1 filers should assume that they will have to file Component 2 data by the September 30, 2019 deadline. Questions on this matter may be directed to NADA Regulatory Affairs at
Tags: General Management, Human Resources, Department of Labor (DOL), EEOC, Labor & Employment, Regulatory Affairs
Dealership Websites and the Americans with Disabilities Act – Frequently Asked Questions (May 2019)
The last few years have seen increased litigation on the accessibility of commercial websites by those with visual or motor skill impairments. This is an evolving issue that impacts both our members and our organization. For example, between 2017 and 2018, website accessibility lawsuits under the Americans with Disabilities Act (ADA) surged by some 30 percent, with the majority targeting the banking, restaurant, and retail industry sectors. Retail light-duty vehicle dealerships have been threatened with lawsuits and sued. This issue is made more complex for franchise dealerships because OEM-mandated websites are increasing in ubiquity, thus dealers have limited control over the format and content of their websites. Unfortunately, the legal case decisions interpreting how the law applies to public-facing websites have varied widely between the circuits and even among district courts within a circuit. For additional information please see the attached FAQ.
Tags: ADA, Website, FAQ, Regulatory Affairs, General Management, Marketing, Federal Communication Commission (FCC).
NADA Launches Voluntary Protection Products Policy (April 2019)
Voluntary protection products are offered to consumers to protect their investment in vehicles which they purchase or lease—this includes GAP Waiver and extended service contracts.
Tags: General Management, Service, Parts and Accessories, New Car Sales, Marketing and Advertising, Consumer Product Safety, Regulatory Affairs.
IRS Issues Cash Reporting Reminder (April 2019)
Federal law requires a person to report cash transactions of more than $10,000 to the IRS.
Tags: Internal Revenue Service, General Management, Accounting, Regulatory Affairs
NADA Releases Model Dealership Voluntary Protection Products Policy (April 2019)
NADA has released the new, optional NADA/NAMAD/AIADA Model Dealership Voluntary Protection Products Policy to car and light-truck dealer members. This new resource, prepared in consultation with voluntary protection product (VPP) experts throughout the motor vehicle industry, provides franchised dealers an optional policy template they can use to help ensure that their VPPs are marketed and offered to customers in a compliant, professional and consumer-friendly manner.
Tags: General Management, F&I, VPP, Voluntary Protection Products
Cash Payment Report Helps Government Combat Money Laundering (March 2019)
Cash payment report helps government combat money laundering. Federal law requires a person to report cash transactions of more than $10,000 by filing IRS Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.
Tags: Accounting, General Management, New Vehicle Sales, Used Vehicle Sales, IRS, Regulatory Affairs
IRS Urges Businesses to e-file Cash Transaction Reports; It's fast, easy and free (March 2019)
The Internal Revenue Service today urged businesses required to file reports of large cash transactions to take advantage of the speed and convenience of filing these reports electronically.
Tags: Accounting, General Management, IRS, Regulatory Affairs
OSHA Injury and Illness Electronic Reporting Deadline Looms (February 2019)
Dealerships required to electronically file 2018 employee workplace injury and illness records with the Occupational Safety and Health Administration (OSHA) must do so by March 2, 2019.
Tags: General Management, Human Resources, OSHA, Regulatory Affairs
IRS Releases Final Regulations on Pass Through Deduction (January 2019)
The IRS has released final regulations on the Tax Cuts and Jobs Act’s (TCJA) for pass-through entities including qualifying businesses.
Tags: Accounting, General Management, IRS, Regulatory Affairs
New EPA Rule on Safe Management of Recalled Airbags (December 2018)
The Environmental Protection Agency (EPA) published an interim final rule on safe management of recalled airbags to supplement EPA’s June 2017 and July 2018 memos on the topic.
Tags: Parts & Accessories, Service, EPA, Regulatory Affairs, airbag, recall
NADA Continues to Push for Military Lending Act Solution (October 2018)
NADA and six financial services trade associations urge the Department of Defense (DOD) to withdraw its December 2018 interpretive rule regarding financing or other credit products as part of a vehicle finance transaction.
Tags: F&I, General Management, DOD, Regulatory Affairs 
NHTSA EPA-CAFE GHG Proposal Focuses on Affordability Safety and Fleet Turnover (September 2018)
The Trump Administration issued a proposal to revisit the Obama Administration’s fuel economy (CAFE)/greenhouse gas (GHG) mandates for light-duty vehicles. NADA has been consistently supportive of maximum feasible fuel economy improvements that are affordable and do not compromise the important vehicle attributes customers value. 
Tags: New Vehicle Sales, Service, DOT, NHTSA, EPA, Regulatory Affairs
NADA Releases Truth In Lending Guide (July 2018)
NADA has released its Dealer Guide to Truth in Lending Requirements detailing the technical disclosure requirements that the Truth in Lending Act (TILA) and its implementing regulation (Regulation Z) imposed on dealer credit operations in addition to certain related credit issues.
Tags: Accounting, General Management, Department of Treasury, Office of Comptroller of the Currency, Regulatory Affairs, Truth in Lending Act
FTC Conducts Nationwide Used Car Rule Buyers Guide (July 2018)
The Federal Trade Commission (FTC) announced results of a recent nationwide “compliance sweep of car dealerships” reviewing used cars offered for sale by those dealerships for inclusion of the recently-revised version of the “Buyers Guide.” 
Tags: Accounting, General Management, Department of Labor, Regulatory Affairs, used cars
Potential Tariffs on Autos and Auto Parts (July 2018)
NADA conducted a robust discussion about trade policy focusing on the Administration’s announcement to study the national security impact of imported autos and auto parts and the possibility that a tariff of up to 25 percent could be imposed on those autos and auto parts.
Tags: General Management, Sales-New Vehicles, Service, parts & service, Department of Commerce, Regulatory Affairs, trade
NADA Supports Fuel Economy Greenhouse Gas Emissions Rule Changes (June 2018)
NADA has filed extensive comments with the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA) addressing the need to issue new and/or revised light-duty vehicle CAFE/Greenhouse Gas (GHG) rules for model years 2021-2026.
Tags: Service, General Management, NHTSA, EPA, Regulatory Affairs
Supreme Court Rules Service Advisors Fall Within Federal Overtime Exemption (April 2018)
On April 2, 2018 the Supreme Court issued a decision concluding that dealership service advisors fall within the “salesmen, partsmen, and mechanics” overtime pay exemption under the federal Fair Labor Standards Act.
Tags: Accounting, General Management, Human Resources, Department of Labor, IRS, Regulatory Affairs, FTC, Used Car Sales, Marketing/Advertising,Supreme Court
New NADA Guide on Tax Reform Law (March 2018)
NADA’s Dealer Guide to the Tax Cuts and Jobs Act of 2017 summarizes many of the business and individual changes brought about by the tax reform law signed on December 22, 2017.
Tags: Accounting, General Management, IRS, Regulatory Affairs