IADA - The Idaho Automobile Dealers Association, Inc.

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RED FLAGS RULE ENFORCEMENT TO BEGIN JUNE 1ST - AND THEY MEAN IT THIS TIME!

Unless you’ve been stranded on a desert island over the last few years, you should be at least somewhat familiar with the Red Flag Rules, which require your dealership to implement a comprehensive and dealership-specific Identity Theft Prevention Plan (ITPP), which must be updated regularly. While the FTC has postponed enforcement action for violations of the Red Flags Rule several times since its original November 2008 implementation date, no further delays are anticipated for the planned June 1st start of enforcement action. The Federal Trade Commission (FTC) is set to finally begin enforcement of the Red Flags Rule beginning next month.

For more information go to www.idahoada.org and scroll over compliance or consult NADA's A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft.

MODEL YEAR 2010 FUEL ECONOMY GUIDE

Since 1977, dealers have been required under federal law to post the EPA’s Federal Fuel Economy Guide (Guide), which provides fuel economy information and lists vehicle fuel economy ratings. At every location that you display brochures describing the vehicles you sell, you are required to display either physical copies of the Guide, or a notice stating where the customer may access an electronic version of the Guide at your dealership.

If you decide to display a notice instead of physical copies of the Guide, the notice must contain the following link: http://www.fueleconomy.gov and you must allow the consumer to view and print the guide at no cost.

If sticking to the hardcopy version, you can order the Guide online at: http://www.afdc.energy.gov/afdc/vehicles/fuel_economy_order_form.html, or over the phone at (877) 337-3463, but you must have enough copies on hand to be given to consumers upon request. You must maintain a copy of the appropriate guide for each model year vehicle you offer for sale at your dealership (the last 10 years worth of Guides are available online at: http://www.fueleconomy.gov/feg/feg2000.htm.

2010 NHTSA INSURANCE COST BOOKLET

In addition to the display of Federal Fuel Economy Booklets, dealers must also display NHTSA’s “2010 Relative Collision Insurance Cost Information Booklet” along with vehicle brochures. Unlike the Fuel Economy Guide requirement, which can be satisfied by posting a sign mentioning the availability of online access at the dealership, Insurance Cost Information Booklets must be physically displayed. Your dealership should have received a copy of the sign in the mail. If you have not received a copy, NHTSA asks dealers to call Ms. Ballard of NHTSA’s Office of International Policy, Fuel Economy, and Consumer Programs, at (202) 366-0846 to receive a copy of the booklet and to be added to the mailing list.

These booklets compare differences in insurance costs for vehicles within a similar class on the basis of damage susceptibility, and are updated each year. You must maintain enough booklets to make sure that your customers can read and keep them. The booklets can be ordered by calling (202) 366-0846, or downloaded and printed at the following website: http://www.nhtsa.gov/staticfiles/administration/program_development/2010_Comparison_ Insurance_Costs.pdf.