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Compliance is a critical yet often overlooked area in dealership operations. Ignoring it can lead to fines, legal issues and lost business, especially as dealerships increasingly handle digital transactions and social media marketing. On today’s episode of Inside Automotive, AFIP Executive Director and show host of CBT News’ “Compliance That Works,” Shannon Robertson, shares actionable strategies for dealers to strengthen compliance to mitigate risk and improve dealership operations.
Compliance prevents costly legal and regulatory consequences and should be a core focus of every dealer operator. Dealers can mitigate fines up to 96 percent by demonstrating an active compliance program, even if an employee acts contrary to established policies.
Employees quickly notice when compliance is a priority, and formal training, coupled with accountability, can deter rogue behavior and reinforce dealership culture. High turnover in the industry makes consistent training especially important, ensuring all staff understand policies, procedures, and the consequences of noncompliance.
"Compliance isn't going away, we have to be aware of what your state's focus is."
Robertson emphasizes that effective compliance requires proactive oversight rather than reactive fixes. This includes tracking key processes, monitoring digital and social media activity, and ensuring all advertising, addenda, and fees are properly disclosed and prominently visible to customers. Dealers without these practices risk federal or state enforcement actions, lawsuits, and reputational damage.
Digital marketing presents new challenges. Social media posts, live videos, and online advertisements trigger federal and state rules requiring accurate pricing, disclosures, and clear disclosure of optional fees. Robertson recommends focusing on content that engages customers, such as vehicle walkarounds or feature demonstrations, without posting numbers or promotional offers that could create regulatory risk.
Assigning a dedicated compliance officer and adopting a top-down approach to dealership culture helps maintain standards. Inspection of what is expected, rather than relying on verbal assurances, ensures policies are followed consistently across sales, finance, and marketing teams.
By integrating compliance into everyday operations, dealerships can protect their bottom line, maintain strong relationships with lenders, and foster customer trust. Small, consistent efforts such as monitoring disclosures and training employees create a framework that prevents costly mistakes and supports long-term success.
