Providers & Administrators, 1st Qtr 2019

22 P A 1ST QTR 2019 3 2 1 @ Adobe Stock iQoncept A code of ethics adopted by every dealership would go a long way toward improving the industrys image and would likely result in increased F I production Mark Twain once wrote that Honesty is the best policy when there is money in it If a consumer has a choice to purchase a vehicle from someone he trusts vs someone he doesnt trust which choice will he make If the attorney general investigates a dealer with a conspicuous ethics program will that help the dealer These questions implicitly offer the answers Ethical practices are important to consumer purchasing behaviors And they are significant factors for investigative government agencies and juries Perception is reality and it can be costly The Problem Every December since 1977 the Gallup organization produces a list of American professionals rated by consumers based on honesty and professional standards The sad news is that one of these professions consistently is rated at or near the bottom of these lists car salespeople In 2018 car salespeople were ranked in 19th place just above members of Congress In 2017 car salespeople were ranked 21st just above lobbyists In 2011 car salespeople were ranked 19th which was two places from the bottom of the rankings Gallup rankings vary from 20 to 22 professions In the worst honesty and ethics ratings in Gallup history car salespeople won this title in 1988 1994 and 1995 Remarkably attorneys are not typically ranked in the lowest tiers For many years nurses have been the most trusted professionals Consider as well the fact that car dealers may be the most heavily regulated industry in the U S Numerous federal and state regulations weigh heavily upon dealer operations Much can easily go awry An ethics program may help should something go wrong Finally each year the Consumer Federation of America and the North American Consumer Protection Investigators Association publishes statistics regarding state attorneys general offices regarding which industries attract the most complaints Automobile complaints are almost always No 1 on this list Dealers can do far better than this Ethics Is Good Business There are various ways an adopted ethics program is good business It may eliminate or reduce an intensive investigation When a federal or state agency is deciding to prosecute a dealer the key inquiry is whether the violation occurred in spite of the dealers protocols or because of a faulty or nonexistent program If a dealer has an ethics program prosecutors are far more likely to prosecute the employee rather than the dealership as a whole If an investigating agency sees that a dealer has an effective ethics program or even one that isnt fully effective investigators may decide to investigate an easier target Dealers should note that regulators have numerous targets to investigate and they choose ones that have ignored compliance and ethics It may reduce or eliminate liability Damages are assessed based upon perceived culpability If a dealer is attempting to deal fairly with consumers on balance fewer damages will be assessed or possibly none An ethics program is a testament to this fair dealing Intentional or negligent fraud and deceit is punished particularly with punitive damages which can be exorbitant Judges and juries consider these factors in assessing damages It may minimize or eliminate bad publicity Regulators attempt to be fair in choosing which organizations to investigate and report to the media by way of press releases A dealer who is attempting to be ethical and compliant will increase its chances substantially in avoiding neg Is There Money in an Ethics Program DEPT COMPLIANCE By Terrence J OLoughlin