The greed of car dealers cannot be curbed either in Russia or in the US
- December 19, 2023
- 0
Trade laws are the same everywhere – in the Old World as in the New. Here’s one, pretty universal: If you don’t cheat, you won’t sell. The AutoVzglyad
Trade laws are the same everywhere – in the Old World as in the New. Here’s one, pretty universal: If you don’t cheat, you won’t sell. The AutoVzglyad portal explores how they are trying to combat the basic instinct of businessmen on both sides of the Pacific.
With their brazen attempts to extract a few hundred extra dollars from the simple buyer, American car dealers have finally had enough of the government. Things got so bad that the independent consumer protection agency, the Federal Trade Commission (FTC), finally finalized its own proposal, which it had been delaying since last year. It’s called the Combating Automotive Retail Fraud Rules (CARS Rules).
Americans are for an honest car company
Only recently released, the FTC’s brainchild consists of four provisions designed to commemorate the inviolable principles of fairness and business transparency. It says in black English that dealers are primarily prohibited from distorting information important to the buyer.
Secondly, they must clearly indicate at what asking price the consumer can realistically buy the car. Third, the imposition of additional services that do not provide clear benefits is declared illegal. Fourth, before receiving payment, dealers must ensure that the customer has fully informed the purchase and that he has no unresolved questions about the substance of the transaction. Very pleased with itself, the Federal Trade Commission painted a rosy picture of how the auto sales industry would operate once it adopted the aforementioned rules.
Fair competition, clear trading standards that are the same for everyone, reasonable prices without imposed extras and therefore satisfied customers who are loyal to the car dealers they choose. But the US National Automobile Dealers Association strongly opposed the introduction of the rules. Why would this be? Are they also for fair business practices, or not?
We are ahead of the rest
Americans are not alone in their desire to curb the greed of car salesmen. An absolutely identical picture is observed on this side of the ocean.
We are very similar to them! The same pride, messianism.
They are also smart people and talkers too.
If we teach the Yankees about drinking, and they teach us about Puritanism,
Our own mother can’t tell us apart at all.
Moreover, our state implemented its vision of fair trade somewhat earlier than the Americans. On October 30, 2023, Federal Law No. 505-FZ came into force with the clumsy bureaucratic title “On amendments to Article 14.8 of the Code of Administrative Offenses of the Russian Federation.” Unlike the American model, which essentially represents only good wishes, ours provides for a very specific imposition of an administrative penalty for attempting to impose additional goods, works or services on the consumer for a fee.
The fine amounts to two to four thousand rubles for civil servants and twenty to forty thousand rubles for legal entities. Every driver has an immediate association with selling a car packed to the rafters with extra, often useless options that the buyer does not need.
And Baba Yaga is against it
Typically, our dealers are also not enthusiastic about the new law, which they are prepared to offer organized resistance to when fully implemented. For example, the project manager for additional equipment at Avilon AG, Vadim Volkov, speaks generally approvingly of the innovation, casually noting that the document applies not only to nets and mats, but also to additional services: “The law is not only applies to additional equipment and additional services in general (life insurance, extended warranty, legal support, roadside assistance, etc.). But in order to impose a penalty, there must be a strong evidentiary basis for the offense committed, whereby something was imposed on the customer or the customer was denied a purchase through imposition.”
The Association of Russian Car Dealers (ROAD), in turn, believes that the law could become the basis for repression against car dealers. For example, Executive Director of ROAD Vyacheslav Zhigalov notes that there are situations in life when a dealer has to choose between his own survival and strict compliance with consumer rights.
However, it is still too early for Russian car dealers to worry. No matter how much they cry, they still have many loopholes to circumvent the infamous law. And the fine amounts are simply ridiculous in modern times. And most importantly: there is a moratorium on company inspections until the end of 2024, and in fact the law is not yet working.
Photo: globallookpress.com
photo globallookpress.com
With their brazen attempts to extract a few hundred extra dollars from the simple buyer, American car dealers have finally had enough of the government. Things got so bad that the independent consumer protection agency, the Federal Trade Commission (FTC), finally finalized its own proposal, which it had been delaying since last year. It’s called the Combating Automotive Retail Fraud Rules (CARS Rules).
Americans are for an honest car company
Only recently released, the FTC’s brainchild consists of four provisions designed to commemorate the inviolable principles of fairness and business transparency. It says in black English that dealers are primarily prohibited from distorting information important to the buyer.
Secondly, they must clearly indicate at what asking price the consumer can realistically buy the car. Third, the imposition of additional services that do not provide clear benefits is declared illegal. Fourth, before receiving payment, dealers must ensure that the customer has fully informed the purchase and that he has no unresolved questions about the substance of the transaction. Very pleased with itself, the Federal Trade Commission painted a rosy picture of how the auto sales industry would operate once it adopted the aforementioned rules.
Fair competition, clear trading standards that are the same for everyone, reasonable prices without imposed extras and therefore satisfied customers who are loyal to the car dealers they choose. But the US National Automobile Dealers Association strongly opposed the introduction of the rules. Why would this be? Are they also for fair business practices, or not?
We are ahead of the rest
Americans are not alone in their desire to curb the greed of car salesmen. An absolutely identical picture is observed on this side of the ocean.
We are very similar to them! The same pride, messianism.
They are also smart people and talkers too.
If we teach the Yankees about drinking, and they teach us about Puritanism,
Our own mother can’t tell us apart at all.
Moreover, our state implemented its vision of fair trade somewhat earlier than the Americans. On October 30, 2023, Federal Law No. 505-FZ came into force with the clumsy bureaucratic title “On amendments to Article 14.8 of the Code of Administrative Offenses of the Russian Federation.” Unlike the American model, which essentially represents only good wishes, ours provides for a very specific imposition of an administrative penalty for attempting to impose additional goods, works or services on the consumer for a fee.
The fine amounts to two to four thousand rubles for civil servants and twenty to forty thousand rubles for legal entities. Every driver has an immediate association with selling a car packed to the rafters with extra, often useless options that the buyer does not need.
And Baba Yaga is against it
Typically, our dealers are also not enthusiastic about the new law, which they are prepared to offer organized resistance to when fully implemented. For example, Vadim Volkov, project manager for additional equipment at Avilon AG, while generally approving the innovation, notes in passing that the document applies not only to nets and mats, but also to additional services: “The law is not only applies to additional equipment and additional services in general (life insurance, extended warranty, legal support, roadside assistance, etc.). But in order to impose a penalty, there must be a strong evidentiary basis for the offense committed, whereby something was imposed on the customer or the customer was denied a purchase through imposition.”
The Association of Russian Car Dealers (ROAD), in turn, believes that the law could become the basis for repression against car dealers. For example, Executive Director of ROAD Vyacheslav Zhigalov notes that there are situations in life when a dealer has to choose between his own survival and strict compliance with consumer rights.
However, it is still too early for Russian car dealers to worry. No matter how much they cry, they still have many loopholes to circumvent the infamous law. And the fine amounts are simply ridiculous in modern times. And most importantly: there is a moratorium on company inspections until the end of 2024, and in fact the law is not yet working.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
