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HOT TOPICS
2016
MEMBERSHIP
DIRECTORY
99
Information provided Courtesy of Dealertrack Technologies 516.547.2242;
www.dealertrack.comPenalties for Violation of Federal Consumer Credit Laws and Regulations Continued…
SUMMARY OF LAW
ADMINISTRATIVE PENALTIES
Used Car Rule
Up to $16,000 per violation in a proceeding brought by the FTC.
In addition, possible State AG claims under UDAP laws and
Motor Vehicle sales laws.
Federal Odometer Act
The Department of Transportation can impose penalties of up to
$2,000 per violation up to a maximum amount for a series of
violations of $100,000.
FTC Safeguards and Disposal Rules
Potential FTC fine of $16,000 per day. FTC has entered into 20-year
consent decrees requiring biannual security firm audits and
requirements for updating dealer security systems.
FTC Telemarketing Rule
Up to $16,000 for each violation plus redress to injured consumers.
and FCC Rulings
For dealers, subject to CFPB regulation $5,000 to $1 million for each
day a violation continues.
Magnuson-Moss Warranty Act
May constitute an FTC § 5 Act UDAP.
Telemarketing Consumer Protection Act
of 1991 (TCPA) and FCC Regulations
prohibiting use of auto dialers or text
messages to cell phones or use of
pre-recorded messages to cell phones
or land lines without the prior written
consent of the consumer
* The above laws and regulations have provisions for assessing the wrongdoer plaintiffs’attorneys’fees and costs or
costs of regulatory investigation along with civil or criminal penalties. In an individual or class action, the plaintiffs’
attorney’s fees can easily be six figures or more depending on the length and complexity of the case.