As economic pressures increase, so do customer complaints. Often, these complaints reflect more than just consumer frustration—they expose weaknesses in compliance, training, or internal policies. A recent blog post by Barrie Charapp Beaty of the Virginia Automobile Dealers Association (VADA), “Back to the Basics”, serves as a timely reminder for dealers to refocus on core principles: ethics, training, and responsive complaint handling.
These fundamentals are not just regulatory best practices—they’re essential tools for safeguarding your dealership’s reputation and reducing exposure to legal risk. Learn more about the basics with Barrie Charapp Beaty from Charapp & Weiss.
Ethics and Training: Your First Line of Defense
Ethics-based training goes beyond simply reading legal requirements. It’s about setting a tone of integrity throughout the organization. When employees understand not only what the law requires but also what your dealership expects in terms of ethical behavior, they’re better equipped to navigate complex or high-pressure sales situations without crossing the line.
Clear policies must back up that training. A written Standards of Conduct policy should articulate expectations regarding honesty, legal compliance, and sound judgment. Importantly, it should address specific practices that could trigger scrutiny—such as conditioning advertised prices on dealer financing—and explicitly prohibit any form of retaliation against employees who report concerns.
Handling Complaints Before They Escalate
Another key takeaway from the VADA blog is the importance of a formal complaint-handling process. When a customer complains, whether the issue is valid or not, how your team responds can determine whether the matter ends with a resolution—or escalates to a regulatory agency or litigation.
Dealers should have a consistent, documented procedure for receiving, investigating, and resolving complaints. That process should include deadlines for response, a clear chain of accountability, and a commitment to follow up with customers. And just as with your Standards of Conduct, your complaint-handling policy should be part of employee training.
A Practical Example
Imagine a situation where a customer claims they were misled into thinking an advertised price applied regardless of financing source. Even if the claim is unfounded, it signals a potential gap in how disclosures are communicated—or understood—by staff. If your team is trained to recognize these risks and your policy outlines how to resolve the issue promptly, you not only protect the customer relationship but potentially avoid a formal complaint or investigation.
Final Thoughts
As Barrie Charapp Beaty rightly points out, when external pressures rise, the basics become more important than ever. Ethics-based training, a clear code of conduct, and an effective complaint resolution system are foundational elements that help your dealership operate with confidence—and credibility.
We encourage dealers to read the full VADA blog post, which includes a sample Standards of Conduct policy to help get you started.
If your dealership needs assistance implementing these measures or reviewing existing policies, Charapp & Weiss is here to help you build a stronger, more compliant operation.