Compliance for
Minnesota Dealerships
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Legal Resources
Navigating Compliance for Minnesota's Auto Industry
Minnesota franchised automobile dealers operate under a comprehensive regulatory framework that includes franchise law, consumer protection requirements, advertising regulations, employment laws, and vehicle sales compliance standards. This page provides a centralized reference to help dealers understand applicable legal requirements and maintain compliance in day-to-day operations.
Legal Resources
This section provides legal resources for Minnesota franchised automobile dealers, including compliance guidance, regulatory updates, and practical references covering sales, service, finance, advertising, titling, and employment practices. These materials are designed to support consistent compliance with Minnesota and federal requirements across dealership operations.
Advertising Standards
Minnesota Automobile Advertising Standards, program documents, and links to federal advertising rules.Consumer Issues
Everything you need on key consumer protection mandates, including Federal rules for data privacy and identity theft prevention, required credit score disclosures, damage disclosure laws, and adherence to state warranty and Lemon law statutes.Dealer License and Procedures
Guidance on dealer licensing, title and registration processes, and vehicle transaction compliance.Employment Laws
Stay up to date on wage laws, hiring practices, workplace policies, and employee management.Dealer Plate FAQ
Minnesota law now allows the use of dealer plates on courtesy vehicles provided to customers whose vehicles are being repaired or serviced.Motor Vehicle Franchise Protection Act
Links to the Minnesota Motor Vehicle Franchise Protection Law which governs many facets of the relationship between manufacturers and dealers including geographic restrictions on establishing new dealerships, warranty reimbursement, various unfair manufacturer practices, and dealer termination.Parts & Service
Get legal guidance on repair orders, parts returns, service policies, and warranty processing.OFAC Compliance Guidance
Department of Treasury Department of Treasury – OFAC Compliance Guidance and FAQSales Tax & Retail Delivery Fee
Taxes Minnesota Sales Tax & Retail Delivery Fee MADA Material Leases (Coming Soon) Dealer Owned Vehicles (Coming Soon) Optional Maintenance Contracts (Coming Soon) Minnesota Department of Revenue Materials The Minnesota...
Latest Updates
MADA monitors regulatory developments affecting Minnesota franchised automobile dealers and provides legal analysis of changes to rules, regulations, and dealership compliance requirements impacting operations.
FTC Letters – MADA Updates Advertising Standards Effective May 25
Last week, MADA issued important updates to its Advertising Standards and Three Strikes Policy following recent guidance from the FTC regarding dealer advertising practices. On April 17, NADA hosted an FTC webinar in which senior FTC staff stated that, under Section 5...
MPCA Delays PFAS Reporting Requirement Until September 15
The MPCA has announced that they are delaying the PFAS reporting due date to September 15, 2026. While it is positive that MPCA is finally acknowledging the challenges using their PRISM reporting system, this delay doesn't resolve the primary issue being faced by the...
Sales Manager Accused of Swindling Minnesota Dealership Out of $84,000
On March 24, 2026, prosecutors charged Jason Robert Schaalma, 50, of Bemidji, with two felony counts of theft by swindle under Minn. Stat. § 609.52.2(a)(4). Authorities allege Schaalma manipulated dealership inventory records to hide unauthorized vehicle transactions....
Direct Sales Update: Sony Honda Mobility Cancels Afeela Program; Scout Motors Loses Key Motion in California and Delays Vehicle Launch Plans
Sony Honda Mobility Cancels Afeela EVs and Restructures Joint Venture Honda Motor Co. and Sony Corp. have canceled the Afeela EV program for North America and are restructuring their joint venture, Sony Honda Mobility. The companies discontinued development of the...
FTC Clarifies Enforcement Priorities on Dealer Advertising & Confirms Doc Fee Inclusion Requirement
On April 17, the National Automobile Dealers Association (NADA) hosted a webinar with senior staff from the Federal Trade Commission (FTC) to clarify enforcement expectations following the agency’s March 13 warning letters to 97 dealerships nationwide. Although the...
Follow-Up Legal Alert: FTC Clarifies Treatment of Document Fees in Vehicle Advertising
You must be logged in as a member to view this entire article. On April 17, NADA hosted a webinar with senior staff from the FTC to clarify enforcement expectations following the agency’s March 13 warning letters to 97 dealerships nationwide.
Frequently Asked Questions
Quick answers to common legal concerns facing Minnesota dealerships.
Is there a cap on the doc fee?
Yes. Effective July 1, 2025, the maximum document fee is the lesser of $350 or 10% of the value of the sale or lease. This is a cap — a dealer may charge any amount up to that limit, including no fee at all.
Does any law prohibit the sale of a used vehicle under a recall or stop-sale order?
No. Neither Minnesota nor federal law prohibits selling a used vehicle under a recall or stop-sale. However, your manufacturer may impose different requirements, so consult your franchise agreement and OEM policies.
Do I need to title and register a courtesy vehicle in the dealership’s name if I use dealer plates?
No. If you place dealer plates on a courtesy vehicle, you do not need to title or register the vehicle in the dealership’s name.
Can a manufacturer require me to accept delivery of a vehicle I do not want?
No. Minnesota law prohibits manufacturers from requiring dealers to order or accept delivery of any new motor vehicle the dealer has not voluntarily ordered. Note: This law does not override reasonable franchise provisions that require a dealer to market a representative line of vehicles that the manufacturer publicly advertises.
Is there a statutory cap on a shop supply fee?
No. Minnesota law does not cap the shop supply fee. However, you should ensure that the amount charged is proportional to the cost of materials used. Any required shop supply fee must be included in the advertised or quoted service price.
Do I need to keep original hard copies of vehicle transaction records?
No. In most cases, you may retain electronic copies of original documents. However, your dealership must receive approval from DVS using this form:
Dealer Electronic Records Form (2024-12)
“MADA’s legislative affairs team is an invaluable asset to our dealership. It’s an incredible partnership that allows us to focus on what we are best at: selling and serving automobiles. Their tireless advocacy of the issues that impact us all at the State Capitol ensures our interests are protected, from franchise laws to fair regulations, again allowing us to focus on running our business with confidence today and in the future.”
Legal Questions? Ask Here
MADA members can submit legal inquiries to our in-house legal team for guidance on matters related to dealership operations, regulatory compliance, consumer issues, and more. Please complete the following form so our team can respond accurately and efficiently.