Is your dealership FTC compliant with the new laws taking effect?
As an Automotive Direct Mail Company, we are all too familiar with the rules and regulations put in place to insure safe business practices. Whether it is insurance regulations, credit score reporting, or postal parameters- our goal is to make your Automotive Direct Mail campaign run smoothly without headaches and with full compliance. As businesses get more adept at trying to fool the customer, the FTC is getting stricter on retailers. January 1st brought the official start of some of the biggest regulation updates aimed to protect the consumer. Although some of these laws have been in effect since 2008, the Federal Trade Commission is entering the enforcement phase.
1. Red Flag Rule: Intends to prevent identity theft by demanding business to set up policies that will “red flag” indicators of identity theft and then put together procedures in response.
2. Risk-based pricing Rule: Intends to help people with lower credit scores to get the best financing possible by requiring companies to give out a notice with credit pulls to explain special issues.
3. Model Privacy Notice: This aims to universalize the paperwork that explains how businesses collect and share customer information.
While no flat number can be given as to the costs of implementing these new rules, it is certainly taking up dealerships time and resources. Non-compliance could be much more costly, with fines of up to $2500 along with state lawsuits. Compliance sweeps are expected but only the FTC knows when and how through they will turn out to be. There also are a few regulations that are still out for discussion that could be put into practice as early as 2011. With all the what-ifs, you should feel confident that your Automotive Direct Mail company is working hard for you. Let PrintAutoMail earn your trust and loyalty this year so you have one less thing to worry about.
What about you? Are you finding the compliance of these three rules already easily implemented, working out the kinks, or still struggling to completely catch up to be where you need to be? Let us know what you think.