You may already work with advertising compliance rules, but brand compliance and legal compliance do different jobs. Our team at The Automotive Advertising Agency handles these guidelines every day. This guide explains the distinction.

What is Brand Compliance?

Brand compliance means following your manufacturer’s rules for how its brand appears. Those rules can cover your building and signs, but they often focus on advertising. For franchise dealerships, meeting them is an important part of receiving cooperative marketing funds.

Common Brand Compliance Requirements

Using the right logo is an obvious requirement. Other rules are easier to miss unless you’ve read the guidelines. For example:

• Ford, Nissan, and Honda require rebates to name the source, such as “$2,000 Nissan Cash Back” rather than “$2,000 Cash Back”.

• General Motors has expanded digital ad approvals before publication, but only for selected formats.

• Toyota and Hyundai require clearer APR disclosures in digital and video ads.

Why Brand Compliance Matters

Most OEMs let you submit ads for approval before they run. Learn the rules before you submit. An initial response can take up to three days, so getting the details right can be the difference between meeting a deadline and missing it.

Our team at The Auto Ad Agency brings decades of brand compliance experience. We help you follow the rules and receive the highest available reimbursement on your media spending.

What is Legal Compliance?

OEM approval doesn’t automatically make an ad legally compliant. Brand rules protect the manufacturer’s identity and reputation. Legal rules protect consumers and dealerships from misleading advertising. You need to check both.

Key Differences Between Brand and Legal Compliance

• Brand compliance: Your ads meet the manufacturer’s brand guidelines.

• Legal compliance: Your ads meet state and federal requirements.

Legal Compliance Updates for 2025

• State Requirements: Consumer protection rules differ by state. For example, California and New York have introduced stricter requirements for lease disclosures and promotional APR claims.

• FTC Enforcement: The Federal Trade Commission has increased enforcement against misleading bait and switch advertising. Violations can result in fines exceeding $15,000 per incident.

• Digital Advertising Disclosures: Regulators require clearer disclaimers for financing offers, lease terms, and prices as more dealerships advertise online and on social media.

Risks of Noncompliance

An ad isn’t safe just because a competitor runs something similar. Breaking state advertising rules can expose your dealership to fines and consumer lawsuits. Increased FTC enforcement adds another reason to review ads carefully.

Rival dealerships may also review your ads and report violations to the state. A strained relationship with a competitor makes that risk harder to ignore.

Build Compliance Into Your Process

For dealership advertising in 2025, the practical steps are:

1. Keep Up With OEM Guidelines: Check annual updates to cooperative marketing and branding requirements.

2. Understand State and Federal Rules: Review the requirements that apply where your dealership operates.

3. Use Approval Reviews: Submit ads for OEM and legal review before running them when those processes are available.

4. Work With Compliance Specialists: A team such as The Auto Ad Agency can help your creative meet advertising requirements while supporting your business goals.

Have questions about brand or legal compliance? Please contact us at The Automotive Advertising Agency. We bring decades of combined experience creating dealership advertising that meets compliance rules and protects your investment.