Honda’s “Advertising Police” is After its Dealers

Published: Aug 12, 2014
Honda
For a number of reasons 2014 doesn’t seem the be the most favorable to franchised Honda dealers. Sales are slower compared to those of other automakers, new vehicle launches are scarce, and the brand’s pickup line is aging.

Now there’s a new issue, officially called Honda Compliance Headquarters or as Honda dealers call it – the “advertising police”. The automaker has created this extension to its marketing department to keep “a close watch on the marketing activities of dealers who participate in the brand’s dealer marketing allowance program and cracks down on any who violate strict rules on what dealers can and can’t say in their advertising, whether print, online or broadcast.”

Both the restrictions and the fines that follow their violation seem excessive to Honda’s dealers. For example, advertising a car below its invoice price can cost a dealer up to $400 per vehicle, even though selling the car below that price is actually allowed.

While most dealers agree these measures protect the brand, some are saying that it limits their ability to compete.

Read the full article in Automotive News.

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Robin Kix

Robin Kix is currently the Renewal Department Manager. Since joining Lance Surety in 2014, she has helped thousands of businesses throughout the nation remain compliant at the federal, state and local level. She has significant experience supporting commercial bond lines, particularly in the automobile, transportation and construction industries. Robin and her team work together to create a positive customer service experience at the time of every policy renewal, whether that be finding the best pricing or offering additional assistance.

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