Here’s the latest from NADA:

CIPA Demand Letters

In recent months, plaintiffs’ attorneys have stepped up efforts to send demand letters and file lawsuits against dealerships, alleging that website tracking tools — such as cookies and pixels — collect and share visitor activity in violation of federal and state wiretapping laws, most commonly the California Invasion of Privacy Act (CIPA).

As part of this growing wave of CIPA claims, the U.S. District Court for the Central District of California recently designated one of the most active plaintiffs, Vivek Shah, a “vexatious litigant,” meaning he must get court approval before filing future CIPA claims in that court.

Dealerships use website tracking tools to improve website performance, personalize the customer experience and support features like chat platforms. Demand letters often seek quick settlements to avoid litigation, although plaintiffs continue to file lawsuits against businesses, including dealerships. While recent court decisions may limit some repeat claims, they do not prevent new lawsuits from being filed.

Dealerships cannot stop demand letters from being sent or lawsuits from being filed, even when claims may lack merit. But dealerships can reduce risk by using cookie consent banners that block tracking until a consumer opts in and by ensuring their privacy policies clearly explain what tracking technologies are used and what information is shared with third parties.

Dealers are encouraged to consult their legal counsel regarding any legal dispute and utilize NADA’s guidance in its “Best Practices for Tracking Consumer Website Activity” guide.

Chinese OEMs’ Entry into the U.S. Auto Market

Last month, the Senate Commerce Committee unanimously advanced S. 4429, the “Connected Vehicle Security Act of 2026” (CVSA), sponsored by Sens. Bernie Moreno (R-Ohio) and Elissa Slotkin (D-Mich.).

Chinese vehicles being imported to, or potentially manufactured in, the U.S. pose a growing risk to dealers, incumbent OEMs, workers, and U.S. economic and national security. The bipartisan bill would prohibit the import, manufacture, sale, and resale of connected vehicles and certain connected vehicle hardware and software from China and other foreign adversaries. It also bars vehicles produced by entities owned or controlled by, or operating as joint ventures with, those foreign adversaries.

NADA is reviewing the potential impact of the CVSA’s ownership provisions on dealers representing automakers with significant Chinese investments, such as Volvo and Mercedes-Benz. NADA has also held high-level meetings with the National Security Council, the Department of Commerce, the Department of the Treasury, and the U.S. Trade Representative to express our support for maintaining barriers to Chinese OEMs selling vehicles in the U.S.

NADA strongly supports the CVSA’s policy goals and will continue working with lawmakers to protect dealers and American jobs while minimizing unintended consequences as the legislation advances.

Court Grants NADA’s Motion to Intervene in CRA Lawsuit

In July the U.S. Ninth Circuit Court of Appeals allowed NADA and the Alliance for Automotive Innovation to intervene on the side of the Environmental Protection Agency (EPA) in California’s lawsuit against the EPA in the U.S. District Court for the Northern District of California, granting a motion NADA filed last September. The lawsuit challenges the use of the Congressional Review Act (CRA) to overturn EPA waivers for California’s vehicle emissions programs.

By intervening, NADA can directly defend dealers’ interests against California’s efforts to revive its unattainable standards that Congress properly recognized as hurting vehicle affordability and being out of sync with customer demand. NADA will continue participating in the litigation as the court considers the pending motion to dismiss and, if necessary, in any appeal.

USMCA

The U.S. has not agreed to extend the United States-Mexico-Canada Agreement (USMCA).

The current administration has said it will continue negotiations with Mexico and Canada to address what it views as shortcomings in the agreement, including concerns related to trade imbalances and other provisions. NADA, along with a broad coalition of auto industry groups, has emphasized the important role the USMCA plays in keeping vehicles affordable.

So-Called “Right to Repair” Legislation

On July 22, during Senate Commerce Committee consideration of S. 4429, Sen. Ben Ray Lujan (D-N.M.) filed S. 1379, the “REPAIR Act,” as an amendment to the CVSA, but did not offer the amendment. The Senate REPAIR Act includes highly problematic intellectual property and data privacy provisions. NADA, the Alliance for Automotive Innovation and the International Association of Machinists and Aerospace Workers sent a letter opposing the Lujan amendment.

The bill sponsors want to expand the legislation beyond its current scope and attach it to any moving legislative vehicle, including the National Defense Authorization Act, a must-pass measure typically voted on at the end of the year. It is likely that proponents of the bill will push to pass this legislation during the upcoming lame-duck session of Congress. Defeating broad REPAIR Act language and retaining the scaled-back House committee language will be a top legislative priority for the upcoming Washington Conference.

Catalytic Converter Anti-Theft Legislation

NADA is leading the coalition in support of the PART Act (H.R. 5221/S. 2238) that is supported by law enforcement organizations. NADA continues to advocate for passage of the PART Act, either as a stand-alone bill or as a floor amendment to the Surface Transportation Reauthorization bill.

FTC Advertising Guidance

NADA is continuing to engage with the Federal Trade Commission (FTC) to provide education and guidance on dealer advertising.