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Jared Hamilton
From: Jared Hamilton
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Digital Finance SOS – Is Digital Retailing the Answer? (Part 3)

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VIDEO: Increasing Dealer Rights Over OEM's

The California New Car Dealers Association is fighting for more dealer rights when it comes to manufacturer mandated rules. They are the main sponsor of bill AB 2107.

The hope is to protect the California franchise system and new car buyers by strengthening franchise laws, addressing inappropriate treatment of dealers by  manufacturers and enforcing manufacturer accountability for unlawful actions against dealers.

There are nine main points to the bill, but one of aspect of AB 2107 that addresses vendor usage is creating quite a stir on social media.

It’s no secret OEM’s limit the types of vendors dealers can select to use for websites, dealer management systems and other digital services. AB 2017 restricts the manufacturers ability to select specific vendors for a dealers digital service, and allows dealers to select their own digital service vendor.

New Car dealers seem to be on board with this Bill. However, consumer advocacy groups are worried that parts of the bill will be bad for consumers. Mainly the Consumers for Auto Reliability and Safety and the Alliance of Automobile Manufacturers agree this bill would decrease consumer choices in car options and increase car prices. BUT the California New Car Dealers Association says that will not happen.

What do you think of this Bill? Does it seem like something you could support?

Let me know in the comments below!

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