January 16, 2023. The Federal Trade Commission Occupational increases penalties by 7.745%.
On January 16, 2023, the Federal Trade Commission (FTC) announced increased penalties for various violations, which were adjusted for inflation. Among other things, the FTC increased the penalties as it relates to Section 5 of the FTC Act. Section 5 empowers the FTC to prosecute unfair and deceptive acts and practices (UDAP), and is often used by the FTC in enforcement actions against dealerships.
Specifically, the maximum civil penalty amount has increased from $46,517 to $50,120 for violations of Sections 5(l), 5(m)(1)(A), and 5(m)(1)(B) of the FTC Act. The increase in penalties represents a 7.745% increase from the maximum penalties in 2022.
"Your dealership should take FTC compliance very seriously," said Adam Crowell, President & General Counsel at ComplyNet. "The FTC has the ability to leverage fines of $50,120 per violation for numerous types of violations, ranging from discriminatory pricing practices to failing to post FTC Buyers Guides on used vehicles for sale," continued Crowell. "It is important that you have a platform, process, and people that help your dealership mitigate the risk of a regulatory enforcement action," concluded Crowell.
To learn more about, ComplyNet's F&I, sales, and advertising solutions, visit our solutions page, or schedule a demo.
