This article is meant to provide general information about the CARs legislation and how it can impact texting campaigns.
General Statements:
The information provided in this article was written as of 8/12/2024 and might not be up to date with the most recently released information about the CARs rule. Additionally, the information in this article has been sourced from various publicly available channels and is not meant to be used for legal interpretation of how to operate your business. Convergence and its affiliate companies recommend speaking with your legal counsel to determine the best course of action for writing disclaimers, providing pricing, and setting the guidelines for how to advertise for anything related to the CARs act.
Overview:
The Consumer Automotive Retail Sales legislation, better known as the "CARS" rule is legislation put forth by the FTC and is designed to regulate the practices of automotive dealerships, focusing on transparency and consumer protection during the sales and financing process. This legislation attempts to provide a more transparent purchasing process by requiring dealerships to provide clear disclosures to consumers about pricing, financing terms, and optional add-ons.
When Does This Go Into Effect?:
Currently, the CARs rule is being challenged in the Fifth Circuit Cout of Appeals, and oral arguments are scheduled for October 2024. At this time, there is no set date of when this would go into effect as a ruling has yet to take place.
What Does the CARs Ruling Mean For My Dealership if it Passes?:
Should the CARs ruling be approved and become legislation, many of the systems and agreements that most franchise car dealerships utilize daily would need to adjust the way vehicle pricing is displayed, and the language surrounding how the price is being calculated. Additionally, this would require specific disclosures regarding pricing to be displayed on all advertising channels that comply with the legislation's requirements.
What Do I Need to Change With My Advertising Strategies?:
As stated above, the pricing regarding a vehicle and the disclosures around how that price was calculated and what it includes will need to be transparent in the advertisement. The CARs rule does not prevent any specific type of advertising from being part of a dealer's strategy as long as it complies with the mandates of the legislation. Depending on the limitations of the specific advertising channel, it is advised to craft a strategy that meets the criteria of the channel while also sufficing the mandates of the CARs rule.
For more text-based platforms with limited character inputs like paid search, it might be wise to consider a strategy that is more value proposition-based vs offer.
What Needs To Change For Texting Campaigns:?
As of right now, there is nothing that needs to change in the way texting campaigns are executed as it pertains to the CARs rule. As this hearing approaches and the ruling is determined, Convergence will be closely following along and our strategies will alter depending on the legislation that is crafted. If there is a change that needs to be made in the strategy of the campaigns or the language that is used within the text itself, Convergence will pivot accordingly to meet the demands of the legislation and the demands of our clients.
How Can I Stay Updated and Find More Information?:
There are plenty of reliable sources of information regarding the CARs Act that are currently available. Convergence will be following along and will look to keep any sort of public-facing articles and pieces of information as current and relevant as possible. If you would like to be brought up to speed with the latest information as of 8/7/2024 on the CARs Act, you can start by clicking here to watch a video hosted by ASOTU featuring James Ganther, CEO at Mosaic Compliance Services.