Dealerships should take note of laws, provisions

AARTO, POPIA and FICA are not words that excite, but any dealership that does not understand the impact of these legislative prescriptions can face severe disruption.

24 Brandon Absa2

The role of AARTO with its point demerit system for driver behaviour will impact dealerships when its implemented with effect from mid-2025. Its precise impact and how to manage AARTO at dealership level will need to be sorted before then.

So says Brandon Cohen, national chairperson of NADA and compliance expert (MOTUS Group Governance and Compliance Lead) who spoke at the recent NADAConnect conference in Cape Town.

AARTO is the Administrative Adjudication of Road Traffic Offences Act and points against your name, or a suspended drivers licence, could have a huge effect on both staff and potential customers alike.

In his speech, Brandon also mentioned other aspects relating to the implementation of AARTO, for instance regarding the sale of vehicles to customers with suspended licences, vehicle financing and insurance. Another interesting fact is that points can be issued against a vehicle itself if the driver cannot be pinpointed, and this would have an effect on the sale of the vehicle concerned.

He also touched on the Protection of Personal Information Act (POPIA) and the Financial Intelligence Centre Act (FICA) and role, penalties and compliance of dealerships in terms of these legal and regulatory requirements.

  • NADAConnect is a structured communication programme developed to help dealerships improve their sales, processes and profitability. The Programme is a calendar of interventions for dealership personnel and industry stakeholders to discuss dealership performance both face-to-face and through the digital communication environment.

Watch the video with Brandon Cohen and other speakers at the conference by following this link:

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