LAW-Compliance in 2025-0125

The Federal Trade Commission and Illinois Attorney General recently announced a $20 million settlement involving a 10-dealership automotive group based in Illinois along with the group’s Vice President of Operations as an individual.

This historic settlement happened under existing laws and regulations – even as the fate of the Vehicle Shopping Rule hangs in the balance.

No one knows what regulatory enforcement actions will look like in 2025. Many are hopeful that business will flow smoother once Donald Trump and his allies have settled into their seats in the White House and Congress, but there’s no crystal ball to make clear what will and will not catch the eye of each state's Attorney General and a reformed FTC.

One thing we do know is that enforcement actions against dealerships happen regardless of who sits in the Oval Office. While it's assumed federal regulations will be reduced following Inauguration Day, Reynolds Director of Compliance Terry O’Loughlin has recently stated in numerous articles and speaking engagements that dealers can’t stop governing themselves, as federal agencies cannot ignore complaints by consumers.

We know dealers care about their community, but even those with the best intentions can find themselves on the wrong end of a settlement with the FTC if they aren’t diligent in following the latest laws and regulations involving everything from advertising to F&I documents.

You can read more about the Illinois case here, but here are a few key alleged topics the FTC focused on:

The entire automotive industry is awaiting the 5^th Circuit’s decision on the Vehicle Shopping Rule, but no matter the outcome, it has been and will always be important for dealers to ensure their business practices and F&I documents are in compliance with federal and state laws and regulations.

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