Automotive BDC partners must follow every set of automotive BDC rules: California regulations, New York standards, nationwide compliance, and global legislation – just to name a few – and there’s no room for error. In addition to choosing a BDC provider that integrates with your CRM and offers the level of customer support you need, it’s also extremely important to hire an automotive BDC that understands your state’s specific compliance laws regarding communication protocols.
If you’re a California dealership, Strolid is your full-service solution for keeping up with California-specific regulations, including the California CARS Act, the California Consumer Privacy Act (CCPA), and all Bureau of Automotive Repair (BAR) regulations. Don’t risk your dealership’s reputation and revenue to an underprepared or uninformed BDC company that doesn’t specialize in California compliance. Instead, trust the experts at Strolid for their comprehensive knowledge of your state’s automotive BDC rules.
California‘s automotive industry is more heavily regulated than many other U.S. states, which means it’s more imperative than ever that your business understands California communication protocols in relation to BDC. These regulations can create challenges and opportunities for dealerships and other automotive companies, especially without the right BDC partner in their corner. Whether you’re shopping for an automotive BDC partner like Strolid or you’re interested in double-checking your current BDC’s compliance, here’s an overview of the California-specific regulations you need to know.
Hopefully, your BDC partner is familiar with and up to date on all the California-specific regulations that affect your business and your bottom line. Our experts at Strolid strongly advise that you interview any potential BDC before onboarding to make sure they’re aware of the following California legislation.
Just this year, the state of California introduced Senate Bill 766, more commonly called the California Combating Auto Retail Scams (CARS) Act, to impose stringent new regulations on auto dealers in the state. This bill makes it illegal for dealers to misrepresent material information about vehicle sales, bans valueless add-on charges, and mandates a 10-day right-to-cancel for vehicle sales, among other protections. The California CARS Act may encourage other states to impose stricter standards for automotive entities in the near future.
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Key Takeaways
Strolid can keep your automotive business CCPA compliant by providing transparent 24/7 customer support that corrects any pricing misunderstandings, communicates all necessary fees, and provides a well-rounded picture of your dealership’s car-buying process.
The California Consumer Privacy Act, or CCPA, regulates multiple aspects of the auto industry, including data collection and financing information. The CCPA works to give consumers more control of their personal information and the ways businesses are allowed to collect it. According to the CCPA, consumers have a right to know what personal information dealerships have collected; delete, correct, or limit personal information collected by dealerships; or opt out of sharing personal information altogether. Although unwritten, data mapping is another requirement imposed by the CCPA, as violations that occur regarding unmapped data could be cited as negligence.
Key Takeaways
Strolid’s unique approach to data collection and data security can keep your dealership compliant with CCPA standards. We rely on industry-standard encryption technologies, ​​multi-factor authentication, role-based access controls, and regular audits of user access privileges to ensure data safety. We also stack four AI-backed solutions – Strolid GPT, Strolid Search, Strolid Signals, and Sophia AI – to process your automotive communications, extract valuable insights, and identify patterns. Strolid’s provision of detailed data mining can even aid your dealership in its CCPA-compliant mapping process
California-based automotive retailers must comply with BAR law, which focuses on licensing, inspections, smog and emissions check stations, service technicians, and consumer protections. BAR law also enforces the Automotive Repair Act and regulations related to the automotive repair industry. This piece of California legislation aims to protect consumers and ensure fair practices by requiring automotive repair dealers to meet specific estimate, authorization, invoice, and consumer rights standards.
Key Takeaways:
A professional automotive BDC like Strolid can ensure your dealership adheres to these BAR standards, which in turn helps improve the customer experience, build your dealership’s trustworthiness online and in the local community, and ultimately increase sales and profits.
California BDCs must also comply with all Federal Trade Commission regulations to protect their clients’ legal standing, reputation, and customer information. Key laws that dealerships need to consider when choosing an automotive BDC organization include:
The GLBA, also called the Gramm-Leach-Bliley Act or the Financial Modernization Act of 1999, mandates that financial institutions safeguard their customers’ private financial information and sets standards for protecting consumer data within the financial industry. GLBA requires institutions to explain their data-sharing practices, provide opt-out options for consumers, and implement security measures to protect sensitive data.
Also known as the Truth in Lending Act or TILA, this federal law promotes the informed use of consumer credit by requiring lenders to disclose all terms and costs of loans. Regulation Z protects consumers from unfair and deceptive practices in lending, including mortgage, credit card, and other consumer credit scenarios.
Sometimes referred to as a Fair Credit Reporting Act Identity Theft Rule or a Federal Regulations code for “Detection, Prevention, and Mitigation of Identity Theft,” the Red Flags Rule requires automotive companies to create and launch identity theft prevention programs that can identify the multiple warning signs of identity theft within daily operations.
This federal regulation lays out four basic principles for automotive companies to follow in an effort to increase truth and transparency in car buying and leasing processes. The FTC CARS Rule covers illegal bait-and-switch tactics, hidden charges, and other misleading behavior that harms honest consumers and dealerships.
 The GDPR is a European Union law that sets standards for acquiring, managing, and processing personal data, but it also applies to U.S. companies that process the personal data of EU residents, offer goods or services to them, or monitor their behavior within the EU. This includes any company that collects, uses, or analyzes information about EU residents, even if no monetary transaction is required.
The repercussions of breaking automotive BDC rules in California – and across the globe – are extensive. For example, violating a BAR regulation could result in citations or fines up to $5,000 per incident. The BAR website publicly posts these infractions for at least seven years and may refer the matter to the Office of the Attorney General for formal discipline, such as civil injunctions, license revocation, suspension, or probation.
Penalties for violating the California Consumer Privacy Act can range from $2,500 to $7,500 per violation, with intentional violations carrying the higher penalty. Consumers can also sue for statutory damages between $100 and $750 per incident or for actual damages in the event of data breaches. And as if these fines aren’t enough to motivate you toward a reliable BDC partner, the GLBA may issue fines of up to $100,000 per compliance violation.
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If you’re new to the automotive BDC space or simply looking for more comprehensive protections, Strolid has the answers you need. We abide by BDC operational best practices to ensure every one of our customers receives the support they deserve. Strolid does business differently than most other professionals in the BDC space. How? Here’s a snapshot of the services you’ll gain from a Strolid BDC partnership:
When you choose Strolid to help you follow automotive BDC rules, California dealerships and automotive companies can rest easy. Our signature compliance and customer support solutions ensure your business never misses another call, gains proven strategies that achieve more sales, and can search and find conversations at scale. Reach out today for a complimentary consultation to see how Strolid aligns with your goals and keeps you in line with California-specific regulations
Automotive BDC security providers like Strolid must comply with data privacy regulations and follow the FTC Safeguards Rule that protects customers, demands meticulous standards, and follows BDC compliance guidelines. Strolid also provides industry-leading sales and service BDC solutions that are AI-driven yet human-powered to ensure the most comprehensive protections. Our signature systems also integrate with your existing CMS for a seamless transition.
Automotive BDC compliance guidelines and the FTC Safeguards Rule require stringent BDC data security best practices and BDC customer information protection procedures. Automotive BDC providers must have a well-defined incident response plan to address potential security breaches or incidents and implement strict access controls to ensure data protection for automotive communications. Learn more about how Strolid maintains automotive BDC data security with a free consultation today.
Customers should expect their automotive BDC security partner to follow all customer information protection best practices and compliance guidelines. BDC partners should also provide transparent service that allows you to see, read, and listen to customers and Strolid employees. Request information about data encryption protocols and regular security audits to make sure client data will be protected and that all regulatory compliance rules are followed, including the FTC Safeguards Rule
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