Compliance for
Minnesota Dealerships
Stay informed and protected with MADA’s legal resources
Legal Resources
Navigating Compliance for Minnesota's Auto Industry
Franchised dealers navigate daily requirements spanning franchise/manufacturer relations, advertising and pricing disclosures, sales and F&I compliance, titling and registration, privacy and data security, employment rules, environmental obligations, warranties/recalls, and recordkeeping. This page highlights the most common obligations and best practices—so your store stays compliant and focused on serving customers.
Legal Resources
Advertising Standards
Find all the documents for the Minnesota Automobile Advertising Program, plus Federal rules covering claims about leasing, “free” items, and fuel economy.
Employment Laws
Stay up to date on wage laws, hiring practices, workplace policies, new state rules like MN Paid Leave and ESST, and how to correctly classify employees under the FLSA.
Consumer Issues
Everything you need on key consumer protection mandates, including Federal rules for data privacy and identity theft prevention, required credit score disclosures in financing, mandated damage disclosure laws, and adherence to state warranty and Lemon Law statutes.
Motor Vehicle Franchise Protection Act
Find information on warranty reimbursement rules, compensation for vehicles under recall, and protection against unfair practices.
Dealer License and Procedures
Find the state dealer licensing laws, a link to the DVS website for forms and important information, and FAQs for using dealer plates.
Parts & Service
Get legal guidance on repair estimates and invoices, shop practices, and mechanic’s liens.
Latest Updates
MADA protects Minnesota auto dealers by engaging on legislative issues important to your business’ operations.
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.
FTC Issues Warning Letters to 97 Dealership Groups
Minnesota dealers should note a recent Federal Trade Commission (FTC) warning letter campaign that targets how vehicle prices are advertised. While the letters do not create new law, they clearly signal enforcement priorities and raise important questions about how...
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.