Archive October 2023
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FTC Fines Dealership Group $1.1 Million
In a move aimed at protecting consumers and ensuring fairness in the auto industry, the Federal Trade Commission (FTC) and the State of Wisconsin have launched legal proceedings against a prominent Wisconsin auto dealer group. The case, filed on October 24, 2023, has shed light on deceptive practices that have allegedly affected countless car buyers. Rhinelander Auto Center, its owners, and General Manager Daniel Towne stand accused of deceiving customers by adding illegal fees to car prices and discriminating against American Indian customers through higher financing costs and fees.
Sentence Handed Down in Nationwide Temporary Tag Scheme
The U.S. Attorney's Office in the Southern District of Texas successfully prosecuted a complex nationwide fraud scheme impacting the automotive industry and consumers nationwide. Octavian Ocasio, widely known as the "Used Car King of New York," has been convicted, alongside his associates, for masterminding a sophisticated operation involving counterfeit Texas paper vehicle tags. This case sheds light on a deceitful operation that reverberated throughout the independent automobile dealer community.
TxDMV Fines Dealer $200,000 and Revokes Their License
The TxDMV Board sent a clear message to dealers at the last board meeting by fining a dealer $200,000 and revoking their license despite an Administrative Law Judge (ALJ) asking for a fine of $35,200. That message was that the Board will not tolerate dealers misusing the temporary tag system. Here is some background information on the contested case that the TxDMV Board heard and its decision.
Dealers Benefit from the Comptroller's Deferred Sales Tax Exception
Dealerships were facing the acceleration of deferred sales tax despite the COVID-19 pandemic. Initially, the Texas Comptroller's strict 60-day registration rule caused confusion, leaving many dealers financially strained. Amidst the chaos, a glimmer of hope emerged for those who had paid their deferred sales tax on time but faced delays in registrations between March 1, 2020, and December 31, 2021.
Empowering Texas Dealers: TIADA Hits the Road this Fall
TIADA is gearing up for an engaging series of town hall meetings across the state. With sessions planned in Corpus Christi on October 18, Donna on October 19, Abilene on November 7, and Arlington on November 7, TIADA is all set to address the unique challenges faced by dealerships at the regional level. The dealers-only meetings offer a unique opportunity for dealers to voice their concerns, especially about legislative and policy issues that affect their businesses every day.
The UAW Strike, the NLRA, and Labor Laws for Independent Dealers
The United Auto Workers (UAW) have been on strike since September 15, 2023. As reported by Cox, this strike has broad implications for the auto industry as a whole. The workers striking are protected by the National Labor Relations Act (NLRA). Did you know the NLRA covers both union and nonunion employers? With that in mind, in this blog we will look at two ways the NLRA impacts your business even though your employees are not unionized.