A “Disinfection Fee” Is Not a Permitted Fee

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GNYADA is aware of recent consumer complaints objecting to dealers charging “disinfection fees”, “COVID Cleaning Fees” or other pandemic-related surcharges that have been passed along to customers.  
Whether these “fees” are to cover the dealer’s cost for sanitizing the facility, the test-driven vehicle, the purchased vehicle, or anything else at the dealership to address the State Department of Health or CDC’s protocols, it is not permissible to preprint these fees on Buyer’s Orders or on customer Repair Orders. 
  
GNYADA frequently receives inquiries regarding preprinted fees on Buyer’s and Repair Orders. We have advised dealers over the years that both the NYS Attorney General and the DMV consider preprinted fees deceptive and misleading.

  • Buyer’s Orders

    • Only the $75 Doc Fee and a Waste Tire Disposal Fee ($2.50 for each new tire you sell) can be preprinted on your Buyer’s Order. Examples of preprinted fees that are not permitted include delivery, destination, prep, administrative, and financing fees. Add “disinfection fee or COVID fee” to that list.

      Preprinting these fees can lead customers to believe they are mandatory state-imposed fees or nonnegotiable fees.

  • Repair Orders

    • No preprinted fees are permissible on Repair Orders. Charges for the disposal of waste materials, such as anti-freeze, brake fluid and solvents must be clearly stated and itemized on repair orders and in your advertising. If your dealership does not include the price of supplies in the repair, you may charge for shop supplies, such as nuts, bolts, or cleaners if you itemize the cost of each item separately.

Impermissible fees preprinted on dealer contracts or repair orders violate the Motor Vehicle Dealer and Transporter Regulations.  If the Attorney General pursues a consumer complaint concerning preprinted fees, it could be costly for the dealership.  

Dealers should review their documents and advertising to ensure compliance with the AG’s guidelines and DMV’s rules to avoid potential fines and penalties.

Contact GNYADA’s Dealer Hotline at 718.746.5900 if you have any questions on this topic.