For more on this subject, watch Ep. 343 of GarageCast.
For years, the powersports and marine industries operated with a simple philosophy:
Move inventory. Drive traffic. Close deals.
And for a long time, that worked.
But the ground is shifting underneath dealerships right now — and many operators still haven’t realized how serious this moment actually is.
The FTC is no longer focused only on automotive. Regulators are paying closer attention to powersports and marine dealers, particularly regarding advertising, pricing transparency, finance disclosures, and digital marketing practices.
And here’s the uncomfortable truth:
A lot of what the industry has historically considered “normal” is now being viewed as deceptive.
Not because dealers are bad people.
Not because most dealerships are trying to mislead customers.
But because consumer expectations, digital transparency, and regulatory scrutiny have changed faster than dealership habits.
The dealerships that recognize this shift early will protect themselves and build stronger customer trust.
The ones that don’t may eventually learn a very expensive lesson.
The Industry’s Old Playbook Is Becoming Dangerous
For decades, dealerships relied on aggressive advertising tactics to generate leads:
The problem is that regulators now see many of these tactics very differently than the industry does.
Consumers are filing complaints at a much higher rate. Regulators are listening. And every complaint creates a digital paper trail.
Today, a customer who feels misled doesn’t just leave frustrated.
They leave reviews.
They post screenshots.
They submit complaints.
They create exposure.
And regulators increasingly view repeated consumer confusion as evidence of systemic deception — whether it was intentional or not.
That distinction matters.
Because intent is no longer the standard.
Perception is.
“But Everybody Does It” Is Not a Defense
One of the biggest mistakes dealers make is assuming that common industry behavior somehow equals compliance.
It doesn’t.
Just because:
…does not mean regulators care.
In fact, industries with widespread bad habits often become bigger targets because the FTC sees an opportunity to make examples out of operators.
And penalties are not theoretical anymore.
FTC fines for deceptive advertising violations can exceed $50,000 per violation. Multi-location groups or high-volume digital campaigns can create enormous exposure very quickly.
But honestly, the fine itself usually isn’t the scariest part.
The real damage is what comes after:
Most dealers underestimate how disruptive an investigation becomes until they’re living through one.
Hidden Fees Are Becoming a Massive Risk Area
This is where many dealerships are most vulnerable.
Consumers today expect online pricing to reflect reality. Dealers know the business is more complicated than that — freight, setup, reconditioning, doc fees, prep, ADM, logistics costs, and OEM requirements all impact margins.
But consumers don’t care about dealership accounting structures if the final number feels wildly different than the advertised number.
That gap between expectation and reality is exactly where regulatory risk lives.
The old mentality of:
“Get them in the door and explain it later.”
is becoming increasingly dangerous.
The safest dealerships moving forward will likely be the most transparent dealerships.
Not because transparency sounds nice.
Because transparency reduces risk.
And, ironically, it also builds trust more quickly in a market where consumers are increasingly skeptical of dealerships altogether.
Your Salespeople May Be Your Largest Compliance Exposure
Most dealerships spend significant time reviewing OEM co-op advertising and website pricing.
Very few monitor salespeople's social media consistently.
That’s a major blind spot.
Today, individual salespeople are effectively running their own media channels:
And many are posting content with little to no compliance oversight.
Statements like:
…can create serious legal exposure when unsupported or improperly disclosed.
And regulators do not separate the employee from the dealership.
If the salesperson represents your business, the dealership owns the liability.
That means every salesperson's post is now part of your dealership’s operational risk profile, whether leadership is paying attention to it or not.
Consumer Trust Is Becoming a Competitive Advantage
This is the part many dealers still underestimate.
The market is changing emotionally.
Customers are exhausted by pricing games.
They’re exhausted by confusion.
They’re exhausted by feeling like they need to “survive” the buying process.
The dealerships that lean into transparency now are positioning themselves differently.
Not softer.
Not weaker.
Smarter.
The future winners in powersports and marine won’t just be the dealers with the biggest buildings or most inventory.
They’ll be the operators customers actually trust.
And trust compounds.
It improves closing percentages.
It improves retention.
It improves reputation.
It improves recruiting.
It improves long-term dealership value.
That matters.
Especially as buy/sell activity accelerates, and dealership valuations become increasingly tied to operational quality, reputation, and sustainability — not just top-line revenue.
Compliance Must Become Operational Discipline
This is no longer a finance-office issue.
Compliance is now an operational discipline.
It affects:
The strongest dealers moving forward will likely be the ones who create cultures built around:
Not because regulators forced them to.
Because sustainable businesses eventually realize that trust is more profitable than shortcuts.
The powersports and marine industries are entering a different era.
Some dealerships will evolve with it.
Others will spend the next five years fighting consumer complaints, reputational damage, and regulatory pressure while wondering why business keeps getting harder.
The warning signs are already here.
