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Continued from page 38 to improve outcomes for both consumers addressing the issue of whether the court
recipients, and how to align the CFPB's and covered entities. had personal jurisdiction over Wholesale
CID processes with those of other agencies. Auto. After the Hands submitted the brief,
Case of the Month the court denied the Hands’ motion for lack
The CFPB believes that entities that have of personal jurisdiction, but granted them
received one or more CID, lawyers who This month’s case involves a dealer’s leave to move to transfer the case to an
represent these entities, and members of the Internet advertising and sales activities. appropriate jurisdiction.
public are likely to have useful information Here’s what happened.
and perspectives that will help inform Alabama’s long-arm statute permits
the CFPB's review of its CID processes. Ashley and Derek Hand sued Wholesale the exercise of personal jurisdiction if
Comments are due by March 27, 2018. Auto Shop, LLC, a Tennessee corporation constitutionally permissible, and the U.S.
with its principal place of business in Constitution requires a defendant to have
The RFI on CIDs comes on the heels of the Tennessee, for selling them a Jeep Wrangler sufficient minimum contacts with the
CFPB's January 17, 2018, announcement with an odometer reading of 66,692 but with forum state in order to satisfy due process.
that it is issuing a call for evidence to actual mileage of 252,603 miles. The Hands The court found that Wholesale Auto lacked
ensure the CFPB is fulfilling its proper claimed that Wholesale Auto violated, sufficient minimum contacts with the state
and appropriate functions to best protect among other laws, the Motor Vehicle of Alabama. The Hands viewed Wholesale
consumers. The CFPB will be publishing Information and Cost Savings Act and the Auto’s advertisement for the Jeep on
in the Federal Register a series of similar Alabama Deceptive Trade Practices Act. autotrader.com, the parties communicated
RFIs, seeking comment on enforcement, by phone between Alabama and Tennessee
supervision, rulemaking, market After Wholesale Auto failed to answer the after the Hands contacted Wholesale Auto
monitoring, and education activities. These complaint, the Hands moved for a default about the Jeep, and the Hands traveled to
RFIs will provide an opportunity for the judgment. The federal trial court asked Tennessee to buy the vehicle.
public to submit feedback and suggest ways the Hands to submit a supplemental brief Continued on page 44

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40 | GIADA Independent Auto Dealer FEBRUARY 2018