There’s been a lot happening on the regulatory front this year, from FTC scrutiny to new legislation impacting dealers at the state level. Joining us on today’s episode of Inside Automotive is Coulter McMahen, President and CEO of the Louisiana Automobile Dealers Association (LADA), to discuss the regulatory changes affecting dealers, key legislative victories in Louisiana and why the franchise model continues to benefit consumers.
According to McMahen, Louisiana dealers support transparent pricing and want to comply with the FTC’s updated advertising expectations. However, he notes that many questions remain about how the federal guidance applies alongside state-specific advertising laws.
“One thing I learned throughout this process is that dealers in Louisiana want to do the right thing and want to do it right.”
McMahn says that dealers are looking to the FTC and NADA for additional clarification, emphasizing that most retailers simply want clear rules so they can operate confidently while serving customers fairly.
Louisiana dealers secure major victories
Louisiana’s 2026 Regular Legislative Session convened in March and reached a final adjournment on June 1. From the session, McMahen highlighted several wins, one of which was granting LADA Association standing, which allows the Association to pursue legal action on behalf of dealers when manufacturers violate the state’s franchise laws. He says the change grants dealers greater protection without forcing individual retailers to challenge OEMs independently.
The Association also helped establish the legal framework for electronic titling, registrations and signatures, laying the groundwork for a more efficient digital purchasing experience while reducing paperwork for both customers and dealer employees.
Franchise model remains robust
Discussing Scout Motors’ direct-to-consumer approach, McMahen said Louisiana law requires the brand to sell through franchised dealers, just as California and Florida require. He argues the franchise system remains the best model for both consumers and communities.
He says franchised dealers provide local advocacy when warranty or recall issues arise, while competition among dealerships helps consumers secure better pricing. Beyond vehicle sales, he points to the industry’s economic contributions through employment, tax revenue and charitable giving as evidence of the franchise system’s broader value.
Among the figures highlighted in LADA’s latest economic impact report:
- Nearly 40,000 direct dealership jobs in Louisiana
- $2.6 billion in employee earnings
- $1.8 billion in state and local tax revenue
- More than $18 million donated to charitable causes in 2025
Nevertheless, McMahen says LADA will continue monitoring FTC enforcement while working with regulators to ensure Louisiana’s implementation aligns with federal expectations without creating unnecessary burdens for dealers.
He also expects tax policy and additional legislative priorities to remain a focus as preparations begin for next year’s legislative session. Despite ongoing affordability concerns and broader economic uncertainty, McMahen says Louisiana dealers remain in a strong position, rating the state’s retail automotive market an 8 out of 10 and expressing confidence in the industry’s resilience.
