Pub. 1 2012-2013 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 7 new jersey auto retailer W W W . N J C A R . O R G what is acceptable and what is not is drawn. Regulators in other states have pointed to certain terms in some rent-to-own arrange- ments that they feel are abusive, unfair, or deceptive. On the other hand, NJ CAR has examined the specifics of one rent-to-own program created by a franchised dealership in New Jersey, which is completely free of the kind of terms that have been criticized in other states. This program, in fact, appears to provide the best possible alternative for buyers with poor credit and helps them re-establish their credit and improve their lives. Clearly, there is a right way to do rent-to-own, and a wrong way. Our industry has a lot to gain if we can self-regulate this issue, if we can avoid the abusive practices that have been seen in other states, and show the regulators that it is not always necessary to jump in and start writing restrictive new laws. Advertising. The rise of the “new media” over the last decade, the increasing reliance on the Internet and social media, both by consum- ers who use these media to shop and compare, and by retailers who use them to market and compete, has brought great changes to the industry, and some confusion. One problem area is the fact that the advertising regulations were all adopted long before the Internet, and some provisions and ideas in the regulations just don’t seem to “fit” with the new marketing para- digm. It is important to remember that Internet “advertisements,” and this means every inventory list that you make available on the Internet, are governed by the same advertising rules that govern traditional print and broadcast ads. NJ CAR has engaged in talks with the New Jersey Office of Consumer Protection on issues relating to new media and the advertising regulations, with an eye towards possible reform of the regulations to bring them up to date with the digital world. Privacy On the issue of privacy, there are more questions than answers, and it is an area that the public is becoming more concerned with than ever before. It is a surprise to many people to learn that the only legal privacy protections that consumers have are limited to medical care and financial transactions. The Privacy Rule, for example, only governs information gathered from a financial customer (a finance, insurance, or lease cus- tomer) in connection with a finance transaction. The rules make bizarre distinctions: for example, a dealer- ship can sell or give away a list of ALL of its customers, along with their addresses and phone numbers. However, it would be illegal for the dealership to sell a list of all finance customers, or of all lease customers. In addition to the complicated nature of the law, the new privacy notice, designed to be more “understandable,” is, instead, completely incomprehen- sible. Customers are understandably confused. In the retail automotive industry, some have questioned new devel- opments such as manufacturer programs that collect data from a vehicle’s “chip” during war- ranty repairs, or the arrangement CarFax has to collect data about vehicles from dealerships. This issue may bubble closer to the surface over time. Sales Tax on Lead Generators The Sales and Use tax was amended in 2006 to impose sales tax on what is called “information services.” The provision which defines taxable “information services” says this includes “the furnishing of information of any kind, which has been collected, compiled, or analyzed by the seller, and provided through any means or method, other than personal or individual information which is not incorporated into reports furnished to other people.” forewarned is forearmed  continued from page 5 The only legal privacy protections that consumers have are limited to medical care and financial transactions. forewarned is forearmed  continued on page 9