XPEL Provides Dealership Solutions to Comply with New Federal Trade Commission (FTC) Regulations
The Federal Trade Commission (FTC) recently announced its proposed rules for new regulations regarding the protection of consumers and promoting transparency during the car-buying process. The focus of these new FTC regulations covers the following key points:
- • No More Hidden or Mandatory Add-Ons
- • Dealers must disclose the full purchase price upfront
- • No More "Junk Fees" for Valueless Add-Ons
- • No More Bait-and-Switch Advertising Practices
This rule seeks to eliminate deceptive practices, such as hidden fees and valueless add-ons, which often burden consumers with unexpected charges. Viable and tangible products added to a vehicle – like XPEL paint protection film, ceramic coating, and window tint- must be clearly documented.
Considering these developments, XPEL, a leading provider of automotive protection products and software, has developed solutions that benefit car dealerships and align with the new FTC ruling. Software solutions like Addendum Plus, help our dealership customers, dealer/installer partners who service them, and the XPEL Field Operations teams lead the way in supporting FTC compliance.
This article will explore the new FTC regulations for car-buying transparency and explain how XPEL strives to help dealerships meet compliance requirements while elevating their revenue potential.
Full Purchase Price Disclosure
One key aspect of the FTC's proposed rule is that dealerships must disclose the full purchase price upfront. XPEL's software solution, Addendum Plus, empowers dealership customers and partners to ensure compliance by accurately documenting all tangible add-on products, including XPEL's industry-leading paint protection film (PPF), premium window tint, and professional detailing chemicals. This comprehensive documentation facilitates transparency and enables consumers to make informed purchasing decisions.
Exclusion of "Junk Fees" for Valueless Add-Ons
The FTC rule aims to eliminate junk fees that saddle consumers with charges for valueless add-ons. XPEL products, including PPF, window tint, and detailing chemicals, offer tangible benefits and address specific customer concerns. By providing these high-quality and sought-after products, dealerships can ensure that add-ons are valuable and worth the investment, thereby avoiding the perception of junk fees and enhancing customer satisfaction.
By leveraging innovative addendum solutions and documenting the products included on each vehicle, dealerships can provide accurate information to consumers, building trust and preventing any misleading practices.
The FTC's proposed rule to ban deceptive practices in the car-buying process presents an opportunity for car dealerships to enhance transparency, build consumer trust, and comply with regulatory requirements.
XPEL's comprehensive range of automotive protection products and software solutions, such as Addendum Plus, can assist dealerships in meeting compliance standards but also elevate revenue potential by offering valuable and tangible add-ons.
XPEL Dealer Peace of Mind
By partnering with XPEL dealerships can provide customers with peace of mind, exceptional protection, and customization options while adhering to the new FTC ruling and maintaining a competitive edge in the market. For more information regarding XPEL Dealership Services, go to our dealership and dealer group page.