With less than two weeks left in the 2012 Maryland Legislative Session, MADA is keeping a watchful eye on any transportation funding package that may get rammed through the Legislature at the last minute.  Governor O'Malley introduced a revenue enhancement bill that would add a 6% sales tax to gasoline purchases, but this tax has shown little favor with members of the General Assembly.  However, transportation revenue is still a priority, so MADA is closely shielding any tax or fee increase associated with the purchase of an automobile.  MADA lobbyists have met with key legislators involved in fiscal negotiations to explain how much tax revenue the State of Maryland receives on every vehicle purchase.  We have stressed that any additional burden will delay a vehicle purchase and ultimately have the reverse effect on state coffers.

MADA is also closely watching all controversial pieces of legislation that involve fiscal issues in case an amendment is included that pertains to vehicle purchases.  A perfect example of such an act occurred recently when Delegate Charles Barkley planned on introducing an amendment to repeal the trade difference on a bill that dealt with increasing the corporate income tax only.  Once MADA received inside knowledge of this amendment, dealer members were asked to contact Delegate Barkley and voice loud opposition.  Dealer members were swift to contact the Delegate, and he promptly withdrew this amendment.

MADA expects many more sneaky attacks by legislators looking to increase revenue when they think no one is looking.   We will be watching every move closely until midnight on April 9th to protect the Maryland franchised dealer.  MADA may need your help again, so please voice your support or opposition when we send out an alert.  

MADA requests that our members save the dates, June 17-20, 2012, for our annual Summer Business Convention. We are returning this year to the Hyatt Regency Chesapeake Bay Golf Resort, Spa & Marina in Cambridge.

We have arranged for two well-respected speakers to join us. Chip Thomas has over 30 years sales experience in a Tennessee dealership and is now the owner of a sales training and consulting company.   He has hosted sessions at previous NADA Convention and will share his sales insight and expertise with our members. Our second speaker, Bill Acheson, is a professor of nonverbal communications. He will instruct you in how to project your best image and the benefits that nonverbal communications can have on your bottom-line. In addition to our business speakers, we will also cover industry and legislative news. We have also planned for festive evening events and we're sure that the whole family will leave Cambridge with fond memories.

Convention materials will be mailed by mid-April, so please be on the lookout. Please note that room reservations will need to be made separately, prior to May 17th, and that link will be provided in the next issue of On the Move. In the meantime, mark your calendars and plan to join us in June!

The Maryland Automobile Dealers Association along with managers from the Motor Vehicle Administration will present a seminar that offers the opportunity to learn new procedures and review old procedures.

Due to the constant changes of regulations governing the sale of a vehicle, MADA strongly encourages individuals from the F&I, Sales, Business Management, and Title & Registration Departments to attend this seminar.

We will also address any titling and registration changes as a result of the 2012 Legislative Session.

LOCATION:  Turf Valley Resort Ellicott City 

DATE:  April 18, 2012 

TIME:  9:30 a.m. - 11:30 a.m.

COST:     $85 p/p member  $125 p/p non-member 

Click Here to Register!

Five car dealers around the country have agreed to Federal Trade Commission (FTC) settlement orders that require them to stop running ads in which they promise to pay off a consumer's trade-in no matter what the consumer owes on the vehicle. The FTC charged that the ads deceived consumers into thinking they would no longer be responsible for paying off the loan balance on their trade-in, even if it exceeded the trade-in's value. Instead, the dealers rolled the negative equity into consumers' new vehicle loans or, in the case of one dealer, required consumers to pay it out of pocket.

The FTC's complaints allege that the dealers' representations that they will "pay off" what the consumers owe are false and misleading, and violate the FTC Act. Examples of the allegedly deceptive advertisements include:

• "Credit upside down? Need a new car? Go to ------------.com. We want to pay off your car."
• "------------- wants to pay [your trade] off in full, no matter how much you owe."
• "I want your trade no matter how much you owe or what you're driving. In fact I'll pay off your trade when you upgrade to a nicer, newer vehicle."
• "--------- will pay off your trade no matter what you owe...even if you're upside down, -------- will pay off your trade."

These cases are the first of their kind brought by the FTC. In addition to announcing the settlements, the Commission also issued a new consumer education publication titled Negative Equity Ads and Auto Trade-Ins.

In addition, complaints in three of the cases allege violations of the Truth in Lending Act (TILA) and it's implementing Regulation Z for failing to disclose certain credit-related terms. Two of the complaints also allege violations of the Consumer Leasing Act (CLA) and it's implementing Regulation M for failing to disclose certain lease related terms.

The proposed FTC orders are designed to prevent the accused dealers from engaging in similar deceptive advertising practices in the future. The orders require the dealers to comply with TILA and Regulation Z, and to make clear and conspicuous disclosures when advertising certain terms related to issuing consumer credit. It also requires that if any finance charge is advertised, the rate must be stated as an "annual percentage rate" or as the "APR." In addition, the proposed orders against three of the accused dealers require them to clearly and conspicuously make all lease related disclosures required by the CLA and Regulation M.

Last month, the National Labor Relations Board (NLRB) had postponed the effective date for its rule requiring employers to post notices of employee rights because the rule was being legally challenged.  Earlier this month, the U.S. District Court for the District of Columbia upheld NLRB's authority to require employers to post the notice.  However, the Court rejected the penalty provisions of the rule that deemed failure to post an unfair labor practice, effectively striking the provision from the rule.  The stricken provision does not prohibit the NLRB from declaring failure to post the notice an unfair labor practice on a case-by-case basis, taking into account the facts of how the failure to post interfered with the employees' rights.  An appeal of this Court decision is likely, but unless the ruling is overturned, employers must now post the notice by April 30, 2012.  The notice is available at www.nlrb.gov/poster.  

MADA announces the next live webinars coming to you from DealersEdge...    

#1: How to Separate Myth from the Reality of the Fair Labor Standards Act for Car Dealerships

Date/Time: Thursday, March 29 at 1:00 p.m.

Presenter: Luanne Peterpaul, J.D. and Partner at Peterpaul & Clark

Cost: $149.00 per person

Every dealership manager needs a refresher course in wage and hour regulations.  Every manager!  Our presenter for this session works with many dealers on related issues and often hears wrong-headed ideas like those listed below.  Join with us for this program and gain a true understanding of the Myth and Reality of this often-misunderstood legislation.

Here are a few of the FLSA Myths that will be debunked:

• My dealership is small.  The FLSA does not apply to me.
• The FLSA doesn't apply to workers who get 1099s.
• I outsource with a Professional Employee Organization (PEO).
• Employees paid on salary aren't covered by the FLSA
• Our payroll company calculates the overtime pay- No worry?
• My sales staff is commission so I don't have to pay overtime.
• I don't have to pay overtime unless I authorize the extra hours
• My employees get comp time, so I don't have to pay overtime.
• My employees are like family--they'd never sue.

#2: Advanced Google Analytics for Car Dealerships

Date/Time: Thursday, April 5 at 1:00 p.m.

Presenter: Brian Pasch, CEO of PCG Digital Marketing

Cost: $149.00 per person

In February we produced a Webinar featuring Glenn Pasch from PCG entitled "Google Analytics 101 for Car Dealers - Getting Started." The February session was designed for those who needed some guidance in getting started with this treasure chest of analytical tools. This follow-up session is intended for those who want a more advanced look at Google Analytics!

Google Analytics can give you more granular information and more detailed analysis as well. This session is designed for those who want to reap even greater insights and benefits from Google Analytics.

Brian Pasch will join us with a more advanced look into Google Analytics and what dealership Internet Managers can do with this remarkable set of tools. Learn how to set up, read and then employ all those Google Analytics dials!

You will learn:

• Create Custom Data Tags
• Create Goals For Conversion and Traffic Measurement
• Setup Google Multi-Channel Sales Funnels
• Create Custom Rules to Track Assisted Conversion Reports
• Integrate Google Webmaster Tools Data

If you missed the Introductory Google Analytics webinar in February and would like to purchase the recording, please visit the website to download a copy today.   

Pritchett Controls, Inc. Providing energy management services to dealerships. Brain Wolff, Senior Account Executive, 6980 Muirkirk Meadows Drive, Beltsville, MD 20705. Phone: 301.470.7300, Email: b.wolff@pritchettcontrols.com.

We thank those members who have already paid their 2012 Membership Year dues. If you have not submitted your membership dues, please do so as soon as possible. We are currently compiling our 2012 membership information to be included in the yearly directory and if we do not have your dues payment, your business will not be included. If you need a 2nd copy of your dues statement, please contact Charlotte Rutkowski at 800.526.7423.