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HOT TOPICS
2017
MEMBERSHIP
DIRECTORY
178
Information provided Courtesy of Dealertrack Technologies 888.705.7926;
www.dealertrack.com•
For failure to file due to intentional disregard, the penalty is the greater of $25,000 or the amount of cash
received, not to exceed $100,000. For failure to furnish notice to persons on whom Form 8300s were filed due to
intentional disregard, the penalty is $500 per failure or, if greater, 10% of the aggregate amounts of the items
required to be reported.
Used Car Rule
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Up to $40,000 per violation.
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Possible state AG claims under UDAP and Motor Vehicle Sales laws.
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Possible UDAP claims or fraud claims under state laws.
Federal Odometer Act
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The Department of Transportation can impose penalties of up to $10,000 per violation, subject to a $1,000,000
cap for a related series of violations.
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In a private party civil action where the violation involves the intent to defraud, liability is the greater of three
times the actual damages or $10,000.
FTC Telemarketing Rule
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Up to $40,000 for each violation; redress to injured consumers; disgorgement of ill-gotten gains earned from
the unlawful conduct.
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For dealers, subject to CFPB regulation, regulation per day penalties in excess of $5,000, subject to a cap.
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States may also obtain relief.
Military Lending Act 10 U.S.C. § 987, 32 C.F.R. Part 232
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Actual damages of not less than $500 per violation.
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Violating contracts are void from inception.
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Arbitration agreements are unenforceable.
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Punitive damages, equitable or declaratory relief, reasonable attorney’s fees, court costs, and any other relief
provided by law.
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Knowing violations are misdemeanors, punishable by fines, up to one year imprisonment, or both.
Magnuson-Moss Warranty Act
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May constitute an FTC § 5 UDAP violation.
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Consumers can recover damages from the breach. This includes remedies already available under state law.