Compliance Programs Have Grown Beyond Simple Box-Checking
Key takeaways
- Compliance for auto dealers used to mean checking boxes to avoid FTC or Attorney General fines, but the scope has since expanded.
- A dealership compliance program now needs to go beyond running vulnerability scans and penetration testing.
- Today's environment includes a litigious society, government organizations pursuing fines, and rogue employees, all of which widen the compliance spectrum dealers must address.
- The purpose of a compliance company is to help a dealership put processes and procedures in place that protect the store and its money against fines, suits, or audits.
- Dealers should take time when choosing a compliance company to ensure it can provide everything needed to genuinely benefit the dealership.
Summary
Dealership compliance has grown well beyond the box-checking approach many stores adopted when the FTC and state Attorneys General first put dealers on notice. A real compliance program today is far more involved than running vulnerability scans and penetration tests. It has to account for a litigious environment, government agencies pursuing fines, and the risk of rogue employees acting against the dealership's interest, which together make compliance a much broader responsibility than it used to be.
For a dealer principal, GM, or F&I director, the practical takeaway is to be deliberate about who you choose to handle compliance. Dortch stresses that a compliance provider's real job is to protect the store and its money by putting processes and procedures in place that guard against fines, lawsuits, audits, or other actions brought against the dealership. Before signing with a compliance company, dealers should confirm the provider can actually deliver everything the store needs, rather than assuming a basic scan-and-check service is enough.
Transcript
Introduction from Terry Dortch
Hi, my name is Terry Dortch. I'm with Automotive Risk Management Partners. I want to talk to you today about compliance.
Compliance has expanded beyond box-checking
You know, several years ago when compliance became the topic in the auto industry, became a concern for auto dealers, it was more of a "I got to get someone to help me out, got to check some boxes, make sure the FTC doesn't come in, make sure the Attorney General doesn't come in and fine me," things like that. There's been a growth, or an expansion, of that whole compliance issue and that whole compliance arena, in the sense that you can't just check boxes anymore. You really need to pay attention to what you're doing with your compliance program, and it's a way more in-depth program than just running your vulnerability scans and your pen testing.
Today's broad compliance risk spectrum
In today's environment, between the litigious society that we live in, the government organizations that are after the money for whatever, and employees, you know, rogue employees, things of that nature, compliance encompasses a huge, huge spectrum. Please, when you're choosing a compliance company, understand that you want someone that's going to really protect your store and ultimately protect your money, because that's ultimately what a compliance company's for, is to make sure that you have processes and procedures in place that are going to help protect you and your money against any type of infraction, or anything that would be waged against you, any type of fine, you know, suit, audit, whatever that may come about.
Choosing the right compliance company
So please take the time when you're choosing your compliance company, make sure that they can provide you with all the things that you need to benefit you as a dealer. If you have any questions, you want to talk about it, give us a call. Your information is right here on the screen. Thanks, take care.
Questions this video answers
Why isn't box-checking enough for dealership compliance anymore?
Compliance used to be about checking boxes to keep the FTC or Attorney General from fining you, but the compliance arena has expanded so much that dealers now need an in-depth program that goes beyond just running vulnerability scans and pen testing.
What risks make compliance such a broad issue for dealerships today?
The litigious society we live in, government organizations pursuing fines, and rogue employees all contribute to compliance encompassing a huge spectrum that dealers need to pay attention to.
What should a compliance company actually do for a dealership?
A compliance company should help protect your store and your money by making sure you have processes and procedures in place that guard against fines, suits, audits, or any other infraction waged against you.
What should dealers look for when choosing a compliance vendor?
Dealers should take the time to make sure the compliance company they choose can provide all the things needed to genuinely benefit them as a dealer, rather than just checking boxes.
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Covered in this video
- FTC enforcement
- vulnerability scans
- penetration testing
- compliance vendor selection