“Nobody can believe it when the government comes for your business, but it happens all too often.” This was the warning from a speaker at an industry-sponsored regulatory meeting. The reality might be even more stark.
In most cases, the government doesn’t even know you exist. If you’re a boat dealer, the truth is, the government is making decisions right now that could harm your business. On multiple fronts. And it’s time you fight back.
Last summer, the Federal Trade Commission issued a notice of rule-making on its proposed “auto rule.” Don’t let the “auto” reference fool you; because of the government’s broad definition for “motor vehicles,” boat, RV and powersports dealers are all at risk of regulations that would significantly restrict the way they sell and finance boats.
On the surface, the proposed rule seems rather innocuous. At the highest level, it purports to protect customers from unfair and deceitful business practices. While no one can argue with prohibiting dealerships from making misrepresentations or using bait-and-switch tactics, some of the specific recommendations would result in unduly burdensome compliance management practices, and could significantly restrict your ability to sell add-on products or services.
But as restrictive and harmful as this action could be for every single one of the nearly 3,600 boat dealerships across the United States, when our team here at the Marine Retailers Association of the Americas alerted those dealers and provided a turnkey method for fighting back, less than 1% (fewer than 40) dealers exercised their voice to fight this governmental overreach. By the time this rule goes into effect, if the FTC moves forward with it, your desire to speak out and voice frustrations will come largely too late. You will have missed the window.
Meanwhile, while the MRAA was authoring its letter to represent the voice of dealers related to the proposed rule, another government agency, the National Oceanic and Atmospheric Administration, issued a proposed rule that would represent the single-greatest restriction to boating access of your lifetime. This vessel speed restriction, seeking to further protect the North Atlantic right whale, would restrict all 35-foot and larger boats to 10 knots along nearly the entire Eastern Seaboard — and in some places, as far out as 100 miles offshore — during significant stretches of time throughout the year.
Here again, while no one disputes the need to protect an endangered species, the restrictions in this proposed rule are unjustifiable. They will prove ineffective and unnecessarily costly to America’s economy — specifically to boating, the largest contributor to the massive outdoor recreation economy. And also, here again, the voice of the individual boat dealer registered was underwhelming.
A few things to note about all of this. First, your dealer association, the MRAA, has kept the dealer voice at the table throughout these and other conversations. However, for advocacy to prove effective, the voice of the business itself — your voice — is the most important. Did you use it?
Second, if you think the right-whale issue doesn’t affect your business because you’re not located on the Eastern Seaboard, you are wrong. There will be another reason on another day in another community that will provide yet another restriction to you and your business. Fighting for sound regulation and natural resource management all the time will prevent similar issues from popping up in the Gulf of Mexico, the Pacific Coast or the Great Lakes or your local lake, while supporting programs and policies that expand access and recreational opportunities. “Nobody can believe it when the government comes for your business, but it happens all too often.”
Third, those are the most highly visible, current issues you need to be aware of. But throughout the United States, we are fighting wakesurfing restrictions in Oregon, Idaho, Indiana, Maine, Vermont, Minnesota, Georgia, Tennessee, Wisconsin and Michigan. We are wrestling with mandatory boater education in Colorado, Arizona, Minnesota, South Carolina, Georgia and Washington. We’re dealing with a little-known issue called right-to-repair, also referred to as illegal tampering, which would hurt service businesses in California, Colorado, Connecticut, Delaware, Florida, Hawaii, Massachusetts, Maryland, Minnesota, Missouri, Montana, New Mexico, New York, Oklahoma, Oregon, South Dakota, Texas, Vermont and Washington.
If you’re keeping track, we’re up to more than 32 states affected by this small handful of issues. And that list doesn’t include lemon laws, the luxury tax in Canada and many more issues occurring at the local and municipal level — all with the ability to severely impact your business.
The point is simple: As you read this, legislative and regulatory overreach is threatening your dealership in multiple ways. As Kris Carroll, president of Grady-White Boats, mentioned during a presentation at the Miami International Boat Show in February, “The government can just change your business in a positive way or a negative way, overnight. There are things we can’t do on our own. You can’t do advocacy by yourself. We need the whole industry. We need to come together so our legislators understand our needs.”
Coming together on issues like these means a few things. It means paying attention and understanding the legislative and regulatory issues that may affect the business of boating. It means supporting your trade association, like the MRAA, that goes to bat for you every single day and becomes most effective when your voice amplifies the collective voice. It means believing that your voice matters. It means using your voice to fight for your business because your employees, your customers and your business matter.
There’s a common saying in advocacy work that if you are not at the table, you are on the menu. If this column makes you feel like you and your business are on the menu, that’s my communications degree finally doing its part. But while your dealer association is doing everything in its power to fight for your business and keep us at the table, we can’t do it on our own. We need your voice.
Now that you understand the threats, also know that it’s past time to get involved. Here’s how you can make that happen right now, before you go back to your day job.
First, visit MRAA.com/STO, where we will help you engage. Second, if you’re not supporting MRAA as a member, amplify our voice in the fight for your business by becoming a member. Third, sign up to be an MRAA Dealer Ambassador, a way to raise your hand and get involved when the government shows up in your backyard. Fourth, upgrade to an MRAA Diamond Ambassador member and help fund MRAA’s growing advocacy work. Fifth, make plans to attend the American Boating Congress in Washington, D.C., to educate yourself on the issues and talk to Congress about how important your business is to the economy. Finally, if you are a member of the MRAA, NMMA or AMI, complete a prior approval form to support BoatPAC to back up those legislators who make decisions in favor of boating.
You can do all this at MRAA.info/STO. And if you need any help at all, your dealer association is standing by to support you.
This article was originally published in the April 2023 issue.
