A Message from VADA President and CEO Don Hall
August 2024
In today’s complex political climate, it's essential to understand how accusations against the minority can impact the majority.
At the dealership level, one negative customer experience — especially one stemming from a lack of transparency or perceived unfairness — can significantly alter public perception. When these experiences accumulate, they don't just harm individual dealerships; they begin to shape the narrative around our entire industry.
While most of us are committed to upholding the highest standards, the behavior of a few bad actors can cast a long shadow. That leads to increased scrutiny, resulting in regulations that affect how we all do business. Regardless of the outcome in the upcoming election, we cannot ignore the possibility that new laws could be introduced, dictating when, where, and how we sell cars.
If we aren’t vigilant, the actions of a few could lead to changes that impact us all. My message is this: If this industry isn’t careful, and you don’t pay attention, you will reap what others have sown.
Consider the recent case of Coulter Motor Co. in Arizona. Earlier this month, the FTC and the State of Arizona brought a significant action against the dealership for deceptive and discriminatory practices — particularly against Latino customers — resulting in a $2.6 million judgment.
Notably, a former general manager was named personally liable. The dealership is now subject to extensive record-keeping, fair lending policies, and advertising restrictions for the next decade.
Closer to home, a Maryland dealer faces charges of unfair and deceptive sales practices and misleading customers. According to news reports, the allegations include deceptive fees, unauthorized add-ons, and failure to disclose necessary information to consumers. The potential penalties are severe, including restitution, damages, and the cessation of these practices.
These cases should serve as a wake-up call for our entire industry. These examples illustrate the real-world impact of government scrutiny and oversight when consumers believe that transparency and fairness are not prioritized. The environment we operate in is changing rapidly, and the consequences of not seeing this as a gut check could be dire.
We must stay vigilant and ensure your teams are aware of and comply with the ethical standards and laws impacting our operations. Protect your business, protect your customers.
This brings me to the importance of political involvement.
September will begin our annual push for contributions, and I urge you to support the Virginia Auto & Truck Dealers Political Action Committee (PAC). The PAC is our united voice, giving us access to lawmakers and helping us advocate for policies that support our industry. Your contributions, whether large or small, are essential.
They allow us to maintain a healthy, pro-business environment in Virginia, ensuring that our industry continues to thrive under our time-tested franchise system.
We’ve already seen strong support from our members, and I’d like to specifically thank Dave Perno and the Loyalty Automotive team, as well as Liza Borches and the leaders at Carter Myers Automotive, for their recent contributions to the PAC. I encourage you to ask yourself and others at your dealership to join them in supporting this crucial effort.
We need everyone’s involvement. Imagine the impact if every dealership in Virginia participated. It’s not just about protecting our businesses; it’s about safeguarding the livelihoods of everyone who works in our industry.
Together, we can protect the integrity of our industry, advocate for fair practices, and ensure that our dealerships continue to serve our communities with the highest standards.
Let’s stay vigilant, stay involved, and keep our industry on the right track.