An infraction refers to co-op infractions for advertising according to OEM requirements.
What is an infraction?
An infraction occurs when a dealer uses non-compliant materials in their advertising. OEMs categorize infractions by severity:
- Minor Infraction: For example, using outdated or incorrect branding elements.
- Major Infraction: Such as displaying misleading or fraudulent vehicle pricing.
Dealers will be notified to correct the infraction. Dealers that are repeatedly found non-compliant after their first infraction may be subject to penalties.
What is a Compliance Agency?
A compliance agency is an independent organization that monitors dealer advertising to ensure it aligns with the OEM's (Original Equipment Manufacturer) branding and standards. While related to Co-Op Programs, which offer OEM funds for advertising, compliance agencies focus specifically on enforcing uniformity in dealership ads. They review ads and notify dealers if corrections are needed to meet OEM guidelines.