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Recyclers News Press
attorney fees and costs, and temporary and perma-
nent injunctive relief. ...We [Consumer Fraud Protec-
tion Division] reserve the right to take action under the
Act against any person or entity that does not comply
with our Guidelines or enforcement positions.”
In a nutshell, a business must identify themselves
as a business when advertising or presenting
products to a consumer.
The recent addition of the $5 fee for dealers to adver-
tise on Craigslist may have inadvertently lead some
dealers to omit that identification. That could end up
being a costly mistake if enforcement action is taken
by the state agencies governing motor vehicles sales
and sales of products or services to consumers in
Iowa.
The added benefit of making the required identifica-
tion as a dealer will also set apart the compliant li-
censed automotive recycler and used car dealer from
the unlicensed and illegal operator selling parts, re-
builders and/or offering automotive recycling services
to unsuspecting consumers.
Recall that in the last legislative session the “Scrapper
Definition” bill passed, updating Iowa Code Section
321.1, subsections 89, 92 and 93, to require any per-
son or entity advertising as a recycler or offering recy-
cling services to be licensed or face penalty.
This specifically addresses the “We Buy Junk Car”
and used auto parts or rebuilder advertisers who may
not be protecting the consumer by formally reporting
VINs to NMVTIS and/or handling titles with consumer
identify information appropriately. Nor are illegal enti-
ties handling the vehicle in compliance with environ-
mental and safety regulations.
In a summation by our Lobbyist, Jim Piazza Jr, who
was instrumental in getting the legislation passed, Jim
stated
“Its official. Governor Branstad signed SF2250
[Scrapper Definition] on March 26, 2014. The law will
become effective July 1, 2014.
It is my hope that the change will help the enforce-
ment efforts against the unlicensed illegally engaging
in the business of buying and selling salvage title ve-
hicles, parts and rebuilding vehicles. I also believe
that this may have an impact on curbstoners where
the vehicle sold has been rebuilt. This law change, in
conjunction with current DOT enforcement operations
and the use of Hamari [reporting] may lead to
stronger interdiction efforts.
Through this legislative effort we have certainly edu-
cated more lawmakers as to our industry and some of
the issues it faces daily. We also know we have
some friends on the Hill.
I think we should see what can be done about ex-
panding enforcement to local authorities in the fu-
ture.”
As internet marketing takes hold in advertising, the
data is easily available to be used by enforcement
agencies to build cases against those unlicensed
businesses conducting commerce illegally. The
Scrapper Definition puts some teeth into the use of
the data but we don’t want our licensed members to
be caught up in the enforcement action for running
blind ads on Craigslist just to save $5.
So identify
your business name in all advertising of products
and services to Iowans!
Dealer Must Identify as Dealer
on Craigslist Ads
