Trade practices are an important aspect of any business, and even minor or seemingly innocent mistakes can have catastrophic consequences. As a dealer, it is crucial to have a good understanding of trade practices to protect your business. If you have a dealership in Florida, you will be subjected to the Florida Deceptive and Unfair Trade Practices Act (FDUTPA), which was created to protect consumers from being taken advantage of. This means that you must take steps to ensure that your business is compliant with the law, and that you are using the right forms, training your staff to follow the proper procedures, and abiding by the rules set forth in 501.975.

So, what is considered deceptive or unfair? Misrepresenting the actual condition of the vehicle, warranty information, or incorrect advertised prices are all examples of deceptive practices. As a dealer, it is important to put yourself in the shoes of the customer and think about how you would feel if you were misled. For example, if a salesman tells you that a car is in mint condition, but it has actually sustained significant water damage, you would feel cheated. Similarly, if you were told that a warranty would cover any problems with a used vehicle, but it does not, you would feel misled.

Minor errors when it comes to using the proper disclosures, even down to incorrect font size, can also have an impact when it comes to FDUTPA. Therefore, it is important to do your due diligence and take the time to learn the laws, stay on top of your compliance, and evaluate your staff. Cutting corners is not the way to succeed in business, and the responsibility falls back on you and your business if one of your salesmen fails to disclose something or misrepresents something just to make a sale.

Consumer attorneys love FDUTPA because it tends to be a catch-all and allows them to seek their attorneys' fees from you. This can result in significant legal fees, even for relatively small claims. However, there are steps you can take to protect yourself. For example, you can have your customers sign a disclosure under Statute 501.98, which requires the Consumer to write a demand letter specifying their damages, which would in turn allow you resolve the matter quickly, and limit their legal fees to the lesser of $500 or 10% of the claim. This can help to stop a claim before it becomes a bigger issue.

Overall, trade practices are a complex and important aspect of any business, particularly for dealerships in Florida. It is important to take the time to understand the laws and regulations, and to ensure that your staff is properly trained to follow the correct procedures. By doing so, you can protect your business and avoid costly legal issues. If you need help drafting a disclosure form or have any other questions about FDUTPA, you can reach out to Auto Legal Group at info@autolegalgroup.com for assistance.

Click here to learn more about Chapter 501 Deceptive and Unfair Trade Practices.