FTC vs. Asbury
The FTC has filed an administrative complaint against Asbury Automotive Group, one of the largest dealership groups in the country, alleging ‘junk fees’ and discriminatory lending practices at multiple Texas locations. While Asbury denies these allegations and is actively contesting the FTC’s authority in federal court, the case highlights the agency’s aggressive posture toward dealership practices.
The Connection to Safeguards
When a dealer adds unauthorized products or fees to a deal jacket, it often involves manipulating the consumer’s financial data. The Safeguards Rule requires that you protect the integrity of customer information. If your systems allow employees to modify contracts or add fees without oversight, you have a massive ‘Internal Threat’ problem.
The ‘Integrity’ Pillar
Security isn’t just about keeping hackers out; it’s about keeping your data honest. The Asbury case shows that the FTC will use every tool in their arsenal to scrutinize dealers who lack controls over their sales and finance processes.
What You Must Audit
- Deal Jackets: Are you conducting regular, randomized audits of your deal jackets to ensure all fees are authorized and disclosed?
- Permission Levels: Do F&I managers have ‘God Mode’ access to change deal terms without a second set of eyes?
- AI Monitoring: We are seeing more dealers use AI to scan for these anomalies before the FTC does. It’s the only way to audit 100% of your transactions.
Note: The FTC vs. Asbury matter is ongoing litigation. Asbury denies all allegations and is challenging the FTC’s administrative proceeding in federal court.
