June 15, 2020
AFSA Extra Credit Podcast: Auto Remote Sales Compliance
The Federal Trade Commission's Cooling-Off Rule has been around since 1972 (it became effective in 1974), but generally has been a non-issue for dealers until the Coronavirus pandemic when dealers were forced to conduct off-site or remote sales to their customers. The Rule regulates a dealer's ability to engage in sales at places other than the dealer's permanent place of business, like consumer's home, consumer's place of business, etc. The Rule requires disclosures in the sale contract, disclosures in a separate notice, and orally, gives a buyer a 3-day right to cancel, prohibits misrepresentations regarding that right, and restricts a dealer's ability to assign the contract until midnight of 5th business day.
In this AFSA podcast, Hudson Cook Partner Eric Johnson discusses the impact of the Rule on dealer's activities and their relationship with their financing sources and ways in which dealers can avoid application of the Rule.