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September 2008 — In these challenging times, the last thing your dealership needs is to pay hefty fines for compliance violations. This edition of ComplianceCast reminds you to ensure the basics are covered, as well as what can happen when your practices aren’t squeaky clean. |
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Auto Dealer Employees Win $19 Million in Discrimination Lawsuit
A federal court jury awarded four men $19 million for the racial discrimination they suffered while working at Thomason Toyota of Gladstone, an Asbury Automotive dealership, in 2005. The complaint charges the company with creating and maintaining a hostile work environment and failing to take immediate action to end it, as well as allowing “racial discrimination in assignments, customer referrals or credit for sales,” and “retaliating against Plaintiffs for opposing racial discrimination.” The award sends a clear message that discrimination will not be tolerated.
Northwest Cable News.com
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Salem Auto Dealership Reaches $100,000 Settlement with State
Salem Nissan has agreed to pay a $100,000 settlement and change its sales practices that include “packing” contracts with several aftermarket products without customers’ knowledge. Investigators also found numerous instances of “bushing” in which Salem Nissan had customers sign new sales contracts without advising them they had a right to walk away from the deal if the original offer was no longer available.
The Oregonian
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Attorney General Files Lawsuit Against KCK Auto Dealer
A Kansas City dealership accused of deceptive advertising practices stands to lose a lot more than wasted air time. The state Attorney General has requested that Chad Franklin Suzuki stop doing business in Kansas, provide restitution to the 650 consumers affected by the deceptive promotion, release all consumers from their contract if they so choose, pay the Attorney General’s Office reasonable investigative fees, and pay civil penalties to the state. To find out the problem with the ad, read on.
Kansas City Kansan
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Compli DCMS Helps Reduce Payroll Tax and Pays for Itself
Scholfield Auto Group of Wichita, Kansas, enjoyed significant tax savings with the help of Compli’s Dealership Compliance Management System (DCMS). After installing the DCMS in July, and in combination with the dealership’s management and unemployment services, Scholfield Auto Group decreased it's payroll taxes by $75,000 for 2008.
Tracey Faulkner, Human Resource Manager at Scholfield Auto Group, explained "Compli's paperless system has the employee’s signature, date code and time code that cannot be changed. If your Administrators monitor the product carefully, you will see a reduction in paperwork, saving you money, as well as a reduction in labor which once again saves money.”
The robust reporting features of Compli’s DCMS enable management to detect and mitigate potential areas of risk before costing valuable time and financial resources. “The documentation, if used properly on the Compli system, can reduce your liability on unemployment claims because management will become accustomed to using the paperless system which gives the employer even more fire power when dealing with these situations,” said Faulkner.
The DCMS even paid for itself. “For what Compli cost for our company to install, we have made up the money by 10 times the amount in 1 year,” exclaimed Faulkner. |
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You & the Red Flags Rule
Compli, Hudson Cook LLP and First Advantage CREDCO, three of the most influential industry experts, have joined together to deliver a comprehensive overview of the Red Flags Rule.
This must-attend webinar will help you gain a critical understanding of the fundamental legal, process and data components of the Red Flags Rule – covering everything you need to effectively create and implement an Identity Theft Prevention Program for your dealership. The webinar will be followed by a Q&A session.
October 9th, 9:00am (PDT)
Space is limited, so reserve your free seat now. To register, visit: https://www2.gotomeeting.com/register/576636721.
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Copyright ©2008 Compli.
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