An infraction refers to co-op infractions for advertising according to OEM requirements.
What is a Compliance Agency?
Compliance is an OEM's monitoring program to ensure dealers are advertising in a uniform and branded approach. This is related to but is separate from Co-Op Programs, which OEMs use to reimburse or provide funds for dealers for advertising.
Compliance agencies independently inspect dealer advertising efforts and will notify dealers to make corrections.
What is an infraction?
An infraction or violation is the result of the dealer using non-compliant material to advertise.
OEMs usually categorize infractions by severity:
Minor Infraction - Example: Outdated or misrepresented branding elements
Major Infractions - Example: Misleading or fraudulent pricing of vehicles
Dealers will be notified to correct the infraction. Dealers that are repeatedly found non-compliant after their first infraction may be subject to penalties.
Last Updated: Mar 23, 2020 1:50 PM