It’s the letter, email, phone call or physical visit that no one wants. An auditor from the Federal Trade Commission (FTC) is visiting your dealership to conduct a formal audit. Whether responding to a specific complaint or conducting an area-wide investigation, auditors mean business. Ignoring the notification – or downplaying the occurrence – is not an option.
But what got their attention in the first place? Most audits stem from unaddressed consumer complaints. For example, the Consumer Financial Protection Bureau (CFPB) states that it has increased its focus on regulations and enforcement actions in large part due to the increase in consumer complaints. Consumers submitted almost 500k complaints to the CFPB in 2021, 800k in 2022, and over 1 million in 2023.
While not every consumer complaint is the result of a compliance failure, agencies such as the FTC and CFPB do analyze the complaint data as an early warning system for potential regulatory issues. A large volume of specific complaints can influence policy decisions.