How UpdatePromise’s system is designed with these regulatory requirements in mind, providing dealerships with tools that streamline compliance and build consumer trust.
The FTC’s CARS Rule and the Need for Express, Informed Consent
The FTC’s CARS Rule was created to ensure that consumers are fully aware of any charges they might incur when purchasing a vehicle, particularly when it comes to add-ons and optional services. At the heart of this rule are four main pillars:
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Prohibition on Misrepresentations: Dealers must not mislead consumers about key financial information, add-on products, or fees.
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Clear Price and Add-On Disclosure: The dealership must disclose the full price of the vehicle and any optional services upfront, ensuring that consumers understand they can opt out of additional charges.
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Ban on Charging for Non-Beneficial Add-Ons: If a consumer won’t benefit from an add-on, dealerships cannot charge for it.
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Express, Informed Consent Requirement: Dealerships must obtain a clear, affirmative agreement from the consumer before charging for any additional services or products.
This last pillar, the requirement for express, informed consent, is perhaps the most challenging for dealers. It requires them to provide clear explanations and obtain an unambiguous “yes” from the customer before proceeding with any charges. The goal is to ensure transparency and prevent confusion, manipulation, or coercion.
How UpdatePromise, with its comprehensive system, is built to simplify this compliance process for dealerships. The system offers various features that help dealers maintain compliance with national and state consumer protection laws, including the FTC’s CARS Rule. Let’s explore how some key features of the UpdatePromise automatically prompts for express, written, or oral consent from consumers, ensuring that no optional services or add-ons are charged without proper authorization. As demonstrated in the uploaded images, the system sends clear, easy-to-understand consent requests to the customer, whether they are scheduling a test drive or agreeing to repair status updates.
For instance, when a customer books a test drive or service, they receive a message or email confirming their appointment. The system asks if they agree to receive updates via text or email, ensuring compliance with legal requirements such as the Telephone Consumer Protection Act (TCPA). This ensures dealerships can record and prove that the customer provided their consent before any further actions are taken.
2. Clear Communication Preferences
UpdatePromise benefit from built-in record-keeping features that automatically log consumer interactions, including the express consent provided by the customer. This creates a verifiable audit trail that can be used to demonstrate compliance with both the FTC's CARS Rule and state-specific consumer protection laws.
In cases where customers opt out of certain communications or services, UpdatePromise system allows dealerships to customize the consent forms used during
