GNYADA December 2018 Newsletter

To read these stories and get the latest news online, visit the GNYADA website at www.gnyada.com

For Dealer Principals / General Managers / Sales Managers The Newsletter A Publication of Greater New York Automobile Dealers Association

DECEMBER 2018 Volume 28, Issue 4

HIGHLIGHTS

Year End Compliance Reminders and Deadlines page 2 GNYADA Looks Ahead to More Success in Albany page 4

Dealers Stepping Up to Collect Coats page 5

eMV-50 Program Has Launched page 6

New Feature: Notes from the Field page 8

NYS and NYC Anti-Sexual Harrassment Requirements page 9

Data Privacy Risks page 10

Avoid Fraud Schemes page 11

The Newsletter is published by GNYADA, a not-for-profit organization representing franchised automobile dealers in the New York metro area. 18-10 Whitestone Expressway Whitestone, New York 11357

Dealer Hotline 718.746.5900

www.gnyada.com

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1 Year End Compliance Reminders and Deadlines

To help members track important deadlines and new and upcoming compliance requirements, the Association has put together this list of reminders.

Anti-Sexual Harassment Requirements All dealers must have an anti-sexual harassment policy in place now and ensure all employees are trained by October 9, 2019 . (see page 9). n Energy and Water Benchmarking, DEADLINE DECEMBER 31, 2018 : Dealers with over 25,000 sq. ft. of floor area, including multiple separate buildings that when added together total at least 100,000 gross sq. ft. of floor area, must report energy and water use. Sick and Safe Time, June 4, 2018: NYC dealers must have a sick and safe time policy. Employees may use safe time when they have, or a family member has, been the victim of domestic violence, a sexual offense, or human trafficking. A “family member” is anyone “related by blood” or “any other individual whose close association with the employee is the equivalent of a family relationship.” n Temporary Schedule Change, July 18, 2018: This gives employees up to 2 temporary schedule changes per calendar year for “personal events.” A “temporary change” can include short-term unpaid leave, paid time off, working remotely, or swapping or shifting work hours. Each year, dealers must grant an employees’ schedule change request on at least 2 separate single day occasions, or on one occasion for up to 2 business days. Employees do not need to provide supporting documentation, nor are they subject to notice requirements. n Cooperative Dialogue, October 15, 2018: Dealers must engage in a cooperative dialogue when an employee requests, or the dealer has notice they may require, an accommodation, related to religious needs, a disability, pregnancy/childbirth/a related condition, or as a victim of domestic violence/sex offenses/stalking. n Lactation Accommodation and Policy, March 17, 2019: Dealers must designate a “lactation room,” defined as “a sanitary place, other than a restroom, that can be used to express breast milk shielded from view and free from intrusion.” Dealers must also give employees a written policy that informs them of their lactation accommodation rights. New Requirements for NYC n

MinimumWage - Effective 12/31/2018

NYC dealers - $15.00

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n Nassau, Suffolk, and Westchester Counties - $12.00 n Rockland County and the rest of NY - $11.10 “White Collar” Overtime Exemption Threshold - Effective 12/31/2018 n NYC - $1,125.00 per week, $58,500.00 per year n Nassau, Suffolk, and Westchester Counties - $900.00 per week, $46,800.00 per year n Rockland County and the rest of NY - $832.00 per week, $43,264.00 per year Paid Family Leave 2019 is the second year of the four-year phase in of NY’s Paid Family Leave (PFL) program, which gives eligible employees paid, job protected time off to bond with a new child, care for a sick family member, or assist when a family member is deployed on active military service. Premiums and Deductions On January 1, 2019, dealers can begin deducting 0.153% of an employee's weekly wage, up to a maximum annual contribution of $107.97, to pay the premiums. Commissions are treated as wages for PFL purposes. Benefits In 2019 employees can take up to ten weeks of Paid Family Leave and receive 55% of their average weekly wage, capped at 55% of the New York State Average Weekly Wage. Employees also maintain their dealer-provided health insurance while on PFL as long as they continue making their necessary contributions. Covered Leave The “Living Donor Protection Act of 2018” allows employees to use PFL to care for a covered family member preparing to or recovering from donating an organ or tissue. This goes into effect on February 3, 2019 . This is consistent with the Federal Family Medical Leave Act which treats organ and tissue donation as covered leave.

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The Newsletter • December 2018

Year End Compliance Reminders and Deadlines

higher wages. Dealers can also confirm wage history after an offer has been made, the applicant has disclosed it to negotiate, and they have received written permission to do so. n Ban the Box: Earlier this month, the Westchester County Board of Legislators passed “Fair Chance to Work” legislation. It now goes to County Executive George Latimer to sign and will go into effect 90 days after signature. Westchester dealers will no longer be allowed to ask an applicant’s criminal history on job applications but can ask about it during interviews and perform background checks after the initial application stage. New Requirements for Suffolk Suffolk has enacted the RISE (Restricting Information on Salaries and Earnings) Act, effective June 30, 2019 . Suffolk County dealers will not be able to ask about an applicant’s wage or salary history, including benefits, or to rely on salary history when determining wages or benefits.

New Requirements for Westchester

n Sick Leave, effective March 30, 2019: Employees who work more than 80 hours per year in Westchester are eligible to earn one hour of sick leave for every 30 hours worked, up to 40 hours per calendar year/12- month period. New hires may be restricted from using this leave for up to 90 days after hire. This time can be used for the employee’s own health need, to care for an ill family member (child, spouse, domestic partner, parent, sibling, grandchild or grandparent; and the child or parent of an employee’s spouse, domestic partner or household member), or if their child’s school/day care is closed due to a public health emergency. n Salary History, effective July 9, 2018: An employer cannot (1) ask for current or prior wage information as a condition of being interviewed, considered for, or offered employment, (2) try to obtain this information from an applicant’s current or former employer, (3) rely on wage history in determining the applicant’s offer unless they voluntarily disclose it to negotiate

2 GNYADA Steps Up Fight for a Fair Doc Fee

Once the data from the 28 dealerships that participated in the analysis is compiled, GNYADA will use the findings as a strategic tool in a multifaceted advocacy effort with the Governor’s Office and State Legislators. GNYADA thanks all the dealerships that participated in the study.

One of GNYADA’s top priorities this legislative session is to increase the Doc Fee. To support GNYADA’s fight for a fair Doc Fee, the Association commissioned an economic analysis to determine the cost the average dealer in the greater New York area pays to perform the required titling and registration work.

The Association hired Cerini & Associates, LLP, a preeminent accounting and auditing firm, to conduct the economic analysis. Some of the areas Cerini & Associates evaluated in the comprehensive analysis included direct registration and titling cost, labor cost, occupancy cost, and overhead that result in a total cost per registration transaction per dealership.

2019 New York Automotive Technology Competition

Long Island Regionals: January 10

NYC and Westchester/ Rockland County Regionals: January 9

Taking place at the Center for Automotive Education & Training 15-30 Petracca Place, Whitestone, NY 11357

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The Newsletter • December 2018

3 GNYADA Looks Ahead in Albany

2018 was a productive year for GNYADA in the State Capital and 2019 is poised to be even busier! Several issues will return to the agenda while others will take on greater significance – increasing the Doc Fee, increasing enforcement against brokers, and protecting and strengthening the franchise law. Protecting the Franchise System Direct Sales: In 2018, GNYADA successfully defeated Tesla’s effort to expand its franchise law exemption, which would have allowed it to open 15 more factory-owned stores. The Association argued that Tesla’s legislation removes competition from the new car retail market, puts NY jobs and businesses at risk, and jeopardizes the other benefits of healthy dealership businesses: strong and reliable tax revenue and support for local charities. GNYADA expects Tesla to renew its effort in 2019. While it will need new sponsors in both the State Senate and Assembly after this year’s elections, GNYADA does not expect the electric car maker to be deterred. GNYADA will prioritize educating legislators, especially the many new legislators, about dealers’ contributions to the state’s economy and to building the Zero Emissions Vehicle market. Tesla argues that it

deserves special treatment because it sells only electric cars, but it has been non-Tesla dealers in NY that have promoted the electric car market the most. In fact, 92% of NY’s nearly 10,000 Drive Clean Rebates have been sold by franchised dealers. Warranty Repairs: GNYADA will also be working to ensure dealers are treated fairly when they make claims for warranty repair work. Some manufacturers are denying dealers reimbursement for the time they spend diagnosing warranty defects and changing the price of warranty parts to avoid paying dealers a fair amount for performing this essential work. Broker Law Enforcement: GNYADA will be meeting with the incoming Attorney General, Letitia James, to discuss her new role in enforcing the State’s Broker Law. That law, which was revised early in 2018, increased advertising and filing disclosures to ensure brokers are operating fairly in NY. However, it remains unclear how well brokers are complying with those laws and whether they are violating others. Brokers set up shop in a NY dealer's market area, usually in a small storefront location. Then, they negotiate and complete sales on behalf of consumers, without the

costly requirements NY dealers must contend with. Most of the vehicles that brokers sell come from out-of- state dealers. In addition to GNYADA’s efforts to see current law strictly enforced, the Association will explore additional changes to ensure brokers are not evading document protection requirements and to prevent these businesses from operating as de facto dealerships. Used Car Recall Bill GNYADA made progress late last session in advancing a Used Car Recall bill in the State Legislature. However, time ultimately ran out after a long Session filled with negotiations with the AG’s Office and representatives of auto manufacturers. Until NY updates its laws, dealers will continue to carry the costs of poor manufacturer designs subject to a recall. Manufacturers currently have little incentive to fix these vehicles. Dealers lose revenue when these cars are recalled and must be moved off the lot and stored. Once the 2019 Session gets underway, GNYADA will provide regular email updates on key developments in Albany.

GNYADA Hires Communications Agency 4 GNYADA recently hired Butler Associates, a public relations & strategic communications agency The Butler team brings a broad spec- trum of expertise as former journal- ists, government press secretaries, corporate communications directors,

This includes spotlighting client issues in the nation's leading news publications, as well as preventing and defusing “bad news” in the media.

specializing in media relations. Butler will be promoting the important role that the Association and its member- dealers play in the state economy, their local economies, and their communities.

and political campaign managers. Butler is best known for its strategic client campaigns and earned media relations, which frequently receive top industry awards and honors.

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The Newsletter • December 2018

Dealers Stepping Up to Collect Coats NEARLY 200 GNYADA MEMBERS SIGNED UP TO DRIVE AWAY THE COLD

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said Mark Schienberg, President of GNYADA. Over the past three decades, this important charity initiative has delivered two million coats to New Yorkers in need. Many dealers are using their social media platforms and in-store promotions to increase their coat collections. Penn Toyota recently received 180 coats from a customer who copied the dealership's flyer and distributed it at her son’s school, bringing the dealership's total to an amazing 205 coats so far! Croton Auto Mall received over 160 coats, Acura of Huntington 150 coats, and Robert Chevrolet 115! Karp Automotive has a relationship with the Girl Scouts who have been Incumbent Comptroller Thomas Dinapoli retained his seat, defeating Republican Jonathan Trichter by almost 2 million votes. Democrats now have complete control of State government, which will likely have major public policy implications in coming years. Democratic Leader Stewart-Cousins’ elevation to Senate Majority Leader Pro Temp could result in a dramatic shift in Albany’s legislative agenda. The election brought many new faces to Albany – as many as 17 new Senators and 22 new Assembly mem- bers – who will likely remain in the Capitol for years to come. That change will have an impact on com- mittee assignments and chairmanship selections for at least the next several years.

dropping off large numbers of coats and BMW of Bayside saw a surprise donation by a local religious institution. Great job by all the dealerships that are participating and we encourage you to keep collecting through the end of the year. No one should have to choose between a roof over their head or a coat to keep them warm.

6 November 15th marked the official start of the 30th Annual New York Cares Coat Drive! GNYADA President Mark Schienberg and Jennifer Berman, Director of Member Services, were on hand as the charity initiative kicked off. “With each year we’ve participated in the Coat Drive, new car dealers have continued to outdo themselves in terms of enthusiasm and generosity. This year, we expect to donate our 50,000th coat. Many GNYADA members have been deeply rooted in the communities where they do business for upwards of 40 to 50 years. They are very committed to collecting winter coats for this annual coat drive to provide their fellow New Yorkers in need with some comfort in the cold winter months,” In New York, Democrats dominated, regaining control of the State Senate by a wide margin and holding onto the State Assembly, despite Republicans’ gain of two seats. Democrats now have the largest majority in the State Senate since 1912. Democratic candidate Leticia James (New York City Public Advocate) made history by becoming the first woman and first person of color to be elected New York’s Attorney General. She defeated Republican Keith Wofford by a large margin. Governor Andrew Cuomo was declared the winner against Marc Molinaro just minutes after polls closed, giving him a third term as Governor and Kathy Hochul a second term as Lieutenant Governor.

Thank you to the nearly 200 GNYADA members who are collection sites.

Shake-Up in the State Legislature

GNYADA has begun scheduling meetings with new legislators to fur- ther the Association’s legislative agen- da and ensure dealers’ interests are represented in Albany. Nationally, Democrats regained con- trol of the House of Representatives. Three New York House seats flipped, including NY-11 (Staten Island), NY- 19 (Hudson Valley), NY-22 (Oneida). While Republicans gained seats in and retained control of the Senate, incumbent Kirsten Gillibrand (Democrat) easily kept her seat.

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The Newsletter • December 2018

7 eMV-50 Program GNYADA COMMUNICATING DEALER CONCERNS Since the Department of Motor

GNYADA explained dealers’ specific issues. In response to conference calls and follow-up discussions in which DMV acknowledged rollout problems, DMV made changes and improvements, including: Continuing to supply paper MV- 50s to help dealers avoid a busi- ness shutdown; Authorizing the helpline to pro- vide a “secret code” so that deal- ers can complete the registration process without further delay; Allowing partner dealers to issue temporary registrations when DMV offices are closed; and Working with Vanguard to improve customer service, after learning of the inadequacies of n n n n administrative decision that Tesla’s Galleries were “engaging in the busi- ness of selling or offering for sale” vehicles in violation of CT law, which says that a manufacturer may not sell vehicles directly to customers. Tesla argued that because the sales paperwork was completed online, not at the Gallery, that the Gallery did not violate CT law. The Court found that taking customers on test drives, assisting them in configuring the

the VERIFI helpline staff, includ- ing long wait times and inability to respond to dealer inquiries. The Association continues to careful- ly monitor VERIFI’s progress and to work with DMV on a regular basis to explain the disruption to dealership operations. GNYADA will continue to be available to assist dealers with any ongoing issues. Thanks to the Association’s conversations with the NYC Department of Consumer Affairs and the DMV, NYC Dealers no longer need to retain separate paper Police Books.

Vehicle’s electronic MV-50 program, VERIFI, has launched, GNYADA has fielded hundreds of calls from dealers and continues to address dealers’ difficulties with both DMV and VERIFI, operated by Vanguard, DMV's contracted vendor. At GNYADA's urging, DMV has issued over 30 Tips of the Day to address common dealer questions. Check GNYADA’s website, which has a new section for VERIFI news and updates. Dealers will find all DMV Tips of the Day catalogued. After DMV announced VERIFI’s phased-in rollout in September,

8 GNYADA Franchise Counsel Wins Against Tesla in CT The Association congratulates Bass Sox Mercer, its franchise counsel, on its important win against Tesla in

vehicle, and providing financing/leas- ing information amounted to engag- ing in the business of selling or offer- ing vehicles for sale. The Court also ruled against Tesla’s argument that the law as applied violates its right to commercial speech and due process rights. Tesla still has the right to challenge the decision by appealing to the Connecticut Supreme Court.

Connecticut Superior Court following Tesla’s appeal of an administrative decision by the Connecticut DMV. BSM partners, Jason Allen and Shawn Mercer, represented the Connecticut Auto Retailers Association in the administrative hearing and on appeal. The Superior Court affirmed the

2019 GNYADA Membership Renewal The Association would like to thank you for your membership over the past year. If you have not done so already, we encourage you to renew for 2019. Your GNYADA membership includes contributions to GNYADA’s Political Action Fund and provides you with Newsletters, e-bulletins; on-call experts to assist with dealership issues; visits from GNYADA Field Reps who provide compliance info, forms, signage, and more; the Membership Directory; educational and training programs; discounts on products and services, and so much more. For more info or if you have any questions, please call Jennifer Berman at 718.746.5900 ext. 235 or email jennifer@gnyada.com .

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The Newsletter • December 2018

Elements of Online Shopping Improve the Car-Buying Process

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tomers will start the process online and complete the transaction at the dealership. Even though most cus- tomers prefer to start the process online, Cox’s study shows eight out of ten consumers would never buy a car without a test drive and seven out of ten wouldn’t without at least see- ing it first. Plus, a whopping 89% want to sign final paperwork at the dealership. Allowing consumers to start the process online is a recipe for faster

in-dealership transactions, happier consumers, and repeat sales. This article was provided by Cox Automotive, a GNYADA Allied Member offering dealers industry- leading digital marketing, software, financial, wholesale, and e-com- merce solutions. The Cox Automotive family includes vendors who can assist with each of the above whole- sale-to-retail steps, such as Manheim®, NextGear Capital®, vAuto®, and others. For more infor- mation, visit www.coxautoinc.com .

The car buying experience is chang- ing dramatically as consumers increasingly go online when shop- ping for a car. To take customer pref- erences into consideration during the buying process, some dealers have begun linking their physical stores and websites to provide a seamless buying experience. Cox Automotive research reveals that 85% of shoppers are more likely to buy from a dealership that allows them to complete at least one pur- chasing step online. Frequently, cus-

GNYADA Members Donate CPR Training Equipment

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The Greater New York Automobile Dealers Association coordinates a CPR Training Manikin donation program. The manikins allow recipients to train their employees, EMT’s, fighters, and area residents on the correct way to provide cardiopulmonary resuscitation (CPR), allowing those trained to save the lives of countless people who suffer heart attacks and are in need of immediate attention. GNYADA members have donated over 100 of the resuscitation training manikins to local community groups and first responder groups. On October 31st, Classic Audi donated a CPR Manikin to the Mount Vernon Fire Dept. Brian Miller, dealer principal, was joined by Mount Vernon Mayor Richard Thomas, Fire Commissioner Theodore Beale, GNYADA President Mark Schienberg, and state Sen. Jamaal T. Bailey. Mayor Thomas said that, “Today’s donation of a digital CPR manikin is a valuable tool for emergency preparedness and we are lucky to have partners like Brian Miller of Classic Audi that give back to our city and community.” “This CPR manikin donation will benefit the entire community,” said Senator Bailey, who represents New York's 36th Senate district. “Hundreds of thousands of people die of cardiac arrest every year, and many of these

deaths can be prevented if more people are trained on proper CPR techniques.” Mount Vernon firefighters demonstrated the CPR manikin’s training capabilities and Fire Commissioner Beale explained that it will be used to train and recertify all 147 members of the fire department.

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The Newsletter • December 2018

Bernard Curry Nominated for 2019 TIME Dealer of the Year Award

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prestigious automotive awards. Curry is one of only 51 auto dealers nominated for the annual award out of more than 16,000 dealers nationwide. “Being a business owner gives me the wonderful opportunity to give back to my community through charitable work, to provide good jobs for more than 1,000 people, including 450 here in Westchester County, and to enhance the lives of their families,” nominee Curry said. “I greatly appreciate this recognition and share it with the entire Curry team.” Curry is being recognized for applying his management expertise and personal philosophy to community causes. When he was recruited to serve on his local hospital’s board of directors after it hired a new CEO, he jumped at the chance to have a positive impact. Now known as New York- Presbyterian Hudson Valley Hospital, it is a highly rated institution that

brings great medical care to the entire region. Curry was also instrumental in creating the Westchester Children’s Museum, in the landmark boathouses at Playland Amusement Park in Rye, NY, as a founding board member and museum benefactor. He currently sponsors an educational exhibit called Toddler Beach at the park. A recipient of numerous honors for his philanthropic work, Curry is equally committed to bettering the lives of his employees. The Greater New York Automobile Dealers Association congratulates Bernard on this distinct honor!

Bernard F. Curry III, dealer principal of Curry Acura in Scarsdale and owner of Curry Automotive, LLC, has been nominated for the 2019 TIME Dealer of the Year award by his fellow dealers. The TIME Dealer of the Year award is one of the industry’s most

NEW FEATURE!

Notes from the Field

One of the questions most frequently posed to GNYADA Field Reps Len Telvi and Aaron Brown, is whether dealers can advertise lower prices than those posted in the showroom. As long as the advertised prices are available to any customer, dealers can advertise lower prices than those post- ed on the car. However, to ensure that there is no risk of a deceptive advertis- ing practice, anywhere the lower price is advertised, you should include, “ You must mention this ad to get this special price! ”

Field Goal: GNYADA publishes an annual Membership Directory that outlines the services the Association offers to its members, lists preferred vendors and allied members, and keeps dealers up-to-date on compliance topics. Recently, a GNYADA dealer requested required signs for the sales and service department after reviewing the Required Signage section in the Association’s Membership Directory and realized it didn’t have all of them. A GNYADA field service representative visited the dealership to deliver the signs and ensure the dealership was compliant with the other signage requirements. The visit and signs were free to the dealership as a benefit of membership!

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The Newsletter • December 2018

Sexual Harassment Prevention Policy and Training Requirements

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Every NY employer is required to have a sexual harassment prevention policy in place and has until October 9, 2019 , to ensure that all employees have received sexual harassment prevention training. Policy The NY Department of Labor, along with the State Division of Human Rights, has provided a model policy and complaint form dealers can adopt or use as a guide to create their own policy. The Association’s Employee Relations Plan (ERP) has reviewed the State’s model documents and has provided a sample policy and complaint form with notes and instructions. Dealers can download these documents from the Association’s website. Dealers must provide employees with the policy in writing or electronically. If a copy is made available on the dealership’s computer system, employees must be able to print a copy for their own records. Dealers are encouraged to have each employee sign an acknowledgement that they have received the policy and keep this in their personnel files. These records may be helpful in addressing any future complaints or lawsuits. Additionally, Dealers need to post the Anti-Sexual Harassment Poster where other employment posters are located. It is best practice to post a copy of the policy itself as well. Training Dealers must train all employees by October 9, 2019, and then annually thereafter. “Annual” can be either per calendar year or a date set by the dealer. NYS has made two interactive training options available free of charge. 1) PowerPoint presentations and script If you use these to present an in-person training, a designated person must be able to answer employees’ questions. The training script is available at: https://www.ny.gov/sites/ny.gov/files/atoms/files/Sexual HarassmentPreventionModelTraining.pdf n The training PowerPoint is available at: https://www.ny.gov/sites/ny.gov/files/atoms/files/Sexual HarassmentPreventionTraining.pdf n

n Training case studies are avaialble at: https://www.ny.gov/sites/ny.gov/files/atoms/files/Sexual HarassmentPreventionTrainingCaseStudies.pdf Conducting an in-person training using these materials and script will meet the State’s requirement that the training be interactive. 2) Online training videos n GNYADA suggests first watching the Policy and Training Overview for Employers: https://www.youtube.com/watch?v=waQhoG06hBw n Staff must watch two separate videos, which are available on the State’s website, https://www.ny.gov/ combating-sexual-harassment- workplace/employers#training-videos . Just having employees watch the videos does not meet the State’s requirement that training be interactive. Having employees complete a worksheet is likely to meet the requirement. ERP has created a sample worksheet that dealers can access at https://gallery.mailchimp.com/ 26aaaa2fc0e8e986dde700fb4/files/08c4a6cc-6b01-4cb1- afc8-98e0382de498/worksheet_and_acknowledgement_ JEM_Redlining.docx . If an employee fails to complete the worksheet or gets more than three answers wrong, it is best practice to have them complete the training again. Record-keeping Dealers should have all employees sign an acknowledgment of training and retain a copy of it in each employee’s personnel file. n The Stop Sexual Harassment Act Notice Poster must be posted, in both Spanish and English, in the employee break room or another location where employees gather. n The Stop Sexual Harassment Act Factsheet must be distributed to all employees and new hires. New York City dealers will also have to ensure that employees have received NYC compliant training by April 2019 ; the details of that requirement have not yet been released. NYC’s Additional Posting/Notice Requirements

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The Newsletter • December 2018

Data Privacy Risks

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physical files while a system failure could delete your digital data. Depending on the size of your deal- ership, you have numerous options: flash drives, external hard drives, online back-up, and cloud storage, to name just a few. 4) After your data is backed up, take steps to secure the back up files. Having two copies of everything doesn’t do any good if they are kept in the same location. 5) Review your emergency plans so that you are ready if a storm takes down your primary server. The Small Business Administration has advice for companies about prepar- ing for all kinds of emergencies and the Department of Homeland Security’s “Ready” initiative has toolkits for business in English and Spanish.

1) Inventory your data, both digital and paper – customer lists, invoices, personnel files, tax records – and consider where it is stored – on your network, in your employees’ smart- phones, on offices computers, on employees’ home computers. Knowing what you have and where you have it is the first step toward creating a preparedness plan. 2) Streamline what your dealership retains! Review the GNYADA Record Retention Chart to ensure that you are keeping everything as long as you need to . . . but not so long that it becomes a privacy risk. Also, ensure that you are disposing of confidential information properly – shredding physical copies and deleting all access to digital. 3) Back up your essential informa- tion – floods and fires can destroy

Believe it or not, your dealership’s most valuable asset may not be the cars on your lot but your customers’ data. Now is the time to review your data privacy safeguards because, not only could your customers’ data be a treasure trove for criminals, the ques- tion of who this information belongs to and who is responsible for protect- ing it is the subject of increasing reg- ulation and litigation. Here are some steps you can take to prevent your valuable data: Any marketing your dealership does on social media – Facebook, Instagram, Twitter – must comply with the FTC’s Unfair and Deceptive Trade Practices to the same extent as other advertising formats. The NY Attorney General takes the position that it must also comply with NY’s advertising guidelines. General Requirements for Social Media Marketing Social media advertisements should make it clear to con- sumers that they are ads or spon- sored content, specifically by using two FTC-approved hash- tags: #ad and #sponsored; It cannot be unfair/deceptive; All relationships with endorsers must be disclosed; n n n

Compliant Social Media Marketing 15

seen as you making a claim about your store or product. Social media advertising is currently receiving a lot of attention from the FTC so contact your attorney if you are unsure if a post violates any fed- eral or state advertising guidelines!

If you use consumer testimonials, you must disclose any financial relationship, cannot edit the testi- monial to make it misleading, and you cannot buy fake reviews or offer refunds for positive ones; If you share or retweet a con- sumer’s post, the contents can be

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The Newsletter • December 2018

Shopping for Medicare

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3) Utilities Scam If your dealership receives a call from the electric, water, or gas company threatening to shut off service without immediate payment, it is probably a scam. Usually these callers will demand payment by wire transfer or gift card – a definite red flag. 4) Online sales scam The FTC has been alerted about a new scam targeting people selling cars online. A customer will insist on seeing a car history report from a specific website first. These sites – which end in the uncommon domain “.vin” – require entering information and paying $20 for the report. If anyone asks for a car history report from a specific site and it’s one you’ve never heard of, ask why! referred to as a Medicare Advantage Plan. It combines both Part A and Part B and normally Part D. There are premiums and co-pays associated with these plans. Part D is prescription drug coverage. Medigap plans and Medicare supple- mental insurance are very popular; these are issued by insurance compa- nies to help cover some of the costs not covered by Medicare. There is a cost associated with this insurance. If you would like to discuss Medicare in more detail, please con- tact Michael W. Conway, Executive Director of the GNYADA Insurance Brokerage (718.746.8100 or mconway@gnyada.com ). n

17 1) Companies Falsely Claiming OSHA Manual is Mandatory GNYADA members have received manuals titled 2018 OSHA Homeland Security Journal for Auto Service Department or New OSHA KIT General Industry Regulations accompanied by invoices of nearly $300 from PV Business Solutions or Federal Safety Compliance Center, Inc. Some dealerships have even received follow-up calls from some- one claiming to be from GNYADA saying that the manual is a mandatory purchase. If your dealership receives this manual, please know it is not a GNYADA product and there is no obligation to purchase it. Always call GNYADA if you have questions. If you have dealership employees who are 65 or over, you should make sure that they are aware of their options. Coverage offered through Medicare may be better for the employee, and cheaper for the dealer, making this a win-win! It is estimated that there are 75 mil- lion baby boomers and approximate- ly 3 million will hit retirement age (65) every year for the next 20 years. After reaching retirement age, indi- viduals who are still working can opt to stay on their dealer-sponsored health insurance or apply for Medicare Coverage. Anyone who meets the below criteria is eligible for Medicare: You are a US Citizen or perma- nent legal resident n

2) Fake ID revealed at titling DMV-Direct received an alert that an individual purchased a vehicle in Westchester and attempted to have the dealer register and title it in Connecticut using a fraudulent CT license. Your staff should confirm that the identifying information on a customer’s license matches the person in front of them and ask them the year they were born. Your dealership may also use an ID verification processor to ensure the name matches the license number and that the licensing state is visible under the processor’s UV light. Also, ensure the license itself appears illegitimate – photo size, watermarks, colors, spacing, and alignment should all be checked. You or your spouse have worked long enough to be eligible for Social Security You have end stage renal disease; You have been entitled to Social Security disability benefits for at least 24 months You have amyotrophic lateral sclerosis (Lou Gehrig’s Disease) Part A covers hospital stays, skilled nursing care, home health care and hospice care. Most people don’t pay for Part A. Part B covers doctors’ services, outpatient medical and surgical services, diagnostic tests, and outpatient care. You do have to pay for Part B coverage. Part C is a plan that is offered by insurance companies. It is n n n There are four Parts to Medicare: n n n n

Avoid Fraud Schemes HERE ARE FOUR NEW SCAMS

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2018

Make Full Use of Your GNYADA Benefits

Francis E. Lake Remembered GNYADA former

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For over a century, GNYADA has committed to ensuring the success and profitability of its members with services that refine and enhance dealers’ operations. We encourage you to utilize each of our benefits and programs for your business. Below are some of the crucial services GNYADA provides to its members:

outside counsel, Francis E. Lake, passed away on March 1 of this year. Francis was a partner at Putney, Twombly, Hall and Hirson and served as

The GNYADA Insurance Brokerage covers all of your deal- ership’s insurance needs, including health and dental coverage, workers’ comp, disability, life insurance, medicare and flexible spending accounts. The Brokerage also consults dealers on mandated changes to their insurance offerings and helps them stay compliant with IRS form filing. Learn more at gnyada.com/dealers/insurance/overview . DMV-DIRECT processes titles and registrations for dealers and can handle rush duplicate titles in as little as three days. In addition to helping dealers with plate transfers, renewals, and VIN searches, DMV-DIRECT is also the only partner outside of Connecticut that can issue Connecticut plates. Visit gnyada.com/dealers/registration/overview . The Association’s Bond Program secures required bonds for dealers throughout our region. In addition to offering members the lowest rates on new car dealer surety bonds ($300 for a two-year, $50,000 bond), the Association helps dealers with Permit Bonds, Utility Bonds, and many others. To learn more, email jennifer@gnyada.com . Each year, GNYADA holds more than 60 specialized Workshops & Seminars for dealers. Trainings are conducted by expert instructors and are designed to improve dealership operations and enhance profitability. To review upcoming courses at GNYADA’s Center for Automotive Education & Training, visit gnyada.com/dealers/professional/overview.

outside counsel for the Association for nearly 30 years. He is fondly remembered by all of those at the Association who worked with him. Francis graduated from St. Michael's High School, St. John's University (Summa Cum Laude), and Columbia Law School (Harlan Fiske Scholar). He is survived by his wife of 52 years, Aileen; children Leighanne and Ed Kubec, Tara and Adam Palminteri, Tracy and Bill Kramer; and grandchildren Hannah, Julia, Joseph, William, Kellen, Ava, John, and Christopher. On behalf of the Board of Directors, fellow GNYADA members, and staff, the Association expresses its deepest condolences to the Lake family.

PROGRAM OND A AD GNY

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GNYADA’s Wall Calendar

Greater New York Automobile Dealers Association 18-10 Whitestone Expressway l Whitestone, NY 11357

Dealer Hotline: 800.245.4640 Headquarters: 718.746.5900 email: assistance@gnyada.com DMV-DIRECT: 718.747.0400

GNYADA is mailing out its member favorite 2019 wall calendar. Be on the lookout for yours to arrive soon.

GNYADA Insurance Brokerage, LLC: 718.746.8100 New York International Auto Show: 718.746.5300 Center for Automotive Education & Training: 718.640.2000

The information contained in this newsletter may not be relied upon for the avoidance of tax penalties. Readers are urged to discuss any issues raised in this newsletter with their legal and tax professionals.

Printed on FSC certified material. All original material except where noted.

© GNYADA 2018

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2018

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