The $10 million Federal Trade Commission settlement involving Napleton Automotive Group suggests regulator scrutiny of dealership margins has expanded from interest rates to finance and insurance products.
"They're in play for discrimination purposes," Randy Henrick, a compliance attorney for Ignite Consulting Partners, told attendees at the Ethical F&I Managers Conference in Denver last month.
Henrick encouraged dealerships to adopt the 2019 Model Dealership Voluntary Protection Products Policy developed by national trade associations as a precaution against such regulatory action.
"That's the best thing you can do," he said.