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The FTC enhances Penalties for Impersonating Government, Other Entities

Friday, April 12, 2024 9:00 AM | Anonymous member (Administrator)

The Federal Trade Commission’s new Government and Business Impersonation rule went into effect April 1, 2024. While it was already an illegal trade practice and violation of federal and state law to manipulate consumers by impersonating the government or another business, the new rule expedites and enhances penalties for doing so.

Dealers should be cautioned to avoid any implication that marketing materials are being issued by any entity other than the dealership. For example, dealers can notify customers that their vehicle is on the National Highway Traffic Safety Administration’s (NHTSA) recall list, but it’s another to imply that a marketing piece is being sent via NHTSA (and not the dealership).

Dealers should also be vigilant in reporting any deceptive marketing efforts, especially those trying to sell service contracts by pretending to be your dealership.

Read more from the FTC here.

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