APR Programs & Car Dealers: Navigating Costco Auto Program Terms of Service

Understanding the terms of service is crucial for anyone interacting with the Costco Auto Program website, whether you’re a visitor, a guest looking for a new vehicle, or a car dealer considering participation. This document outlines the agreement between you and Affinity Auto Programs, Inc., operating as Costco Auto Program (“CAP”), and governs your use of their website and services. For car dealers exploring opportunities through affiliations with programs like Costco Auto Program, a thorough understanding of these terms is not just recommended—it’s essential for compliance and leveraging potential benefits.

Understanding the Agreement: Key Definitions for Car Dealers

To effectively navigate the Costco Auto Program’s terms, car dealers should first familiarize themselves with key definitions provided within the agreement. These definitions clarify the roles and responsibilities of all parties involved and set the stage for understanding the legal framework of the program.

  • Costco Auto Program (CAP): This refers to Affinity Auto Programs, Inc., the independent entity operating the Costco Auto Program, distinct from Costco Wholesale Corporation. It’s important for dealers to recognize this distinction as it clarifies the business relationship.
  • CAP Service(s): This encompasses the range of services and benefits offered by the Costco Auto Program. For car dealers, this could include referrals to participating dealerships, which are vital for lead generation and sales opportunities.
  • Data: This term is crucial for dealers as it pertains to all information collected by CAP related to Guest’s use of CAP Services. This includes vehicle purchase data, guest personal information, and other related data points. Understanding how data is collected, used, and potentially shared is paramount for dealers participating in the program.
  • Guest: A Guest is an individual who submits information to Costco Auto Program to utilize CAP Services. Car dealers interact with Guests referred through the program, making it essential to understand Guest interactions within the CAP ecosystem.
  • Personal Information: This definition is vital in the context of privacy and data protection. It includes all identifiable information about an individual, including name, contact details, Costco membership number, and vehicle purchase details. Dealers must be acutely aware of handling Personal Information in compliance with the program’s privacy policy and broader legal frameworks.
  • Visitor: A Visitor is someone browsing the public areas of the website without requesting CAP Services. While less directly relevant to daily dealer operations, understanding the Visitor status helps delineate different user engagements with the website.

Purpose of Website Access: What Car Dealers Need to Know

The agreement clearly defines the purpose of accessing the Costco Auto Program website. For car dealers, the primary relevance lies in understanding how they can interact with the data and services provided.

  • Information and Data Management: The website access is granted to allow users, including potentially dealers or their representatives acting as Agents, to obtain information and manage data related to participation in CAP Services. This implies dealers may have access to certain data reports or platforms to manage leads or track performance within the program.
  • CAP’s Data Ownership: It’s explicitly stated that once data is received by CAP, it becomes part of a CAP-owned database. Dealers should understand that while they may interact with data, the ultimate ownership and control reside with Costco Auto Program, subject to their privacy policy.
  • Privacy Policy Adherence: Any Personal Information within the data is governed by CAP’s Privacy Policy. This is a critical point for dealers to acknowledge, ensuring their practices align with the privacy standards set by Costco Auto Program when handling customer data obtained through the program.

Warranties and Representations: Dealer Responsibilities

Car dealers engaging with the Costco Auto Program website, especially if acting as agents or representatives of a dealership, must be aware of the warranties and representations they make to CAP.

  • Privacy Policy Compliance: Dealership organizations warrant that they have a legally compliant privacy policy in place and have appointed responsible individuals to oversee personal information handling. This is a fundamental requirement ensuring dealerships are prepared to manage data according to legal standards and CAP’s expectations.
  • Legal and Ethical Data Handling: By accessing the website and managing data, dealers warrant they are not breaching any laws, contracts, or infringing on intellectual property or privacy rights. This underscores the need for dealers to operate ethically and legally within the program framework.
  • Agent Role Limitation: If a dealer employee or representative is acting as an Agent, their website access is strictly limited to performing agent duties. Any unauthorized use is prohibited. This clause emphasizes the defined scope of access for dealership personnel.
  • Agreement Acknowledgment: Dealers and their agents must acknowledge and agree to adhere to the terms and conditions of the entire agreement. This signifies a binding understanding and acceptance of all rules and regulations set forth by Costco Auto Program.

Rules, Regulations, and Prohibited Activities for Dealerships

Compliance with rules and regulations is non-negotiable for car dealers participating in the Costco Auto Program. Understanding prohibited activities is equally crucial to avoid breaches of the agreement.

  • Age and Legal Authority: Users, including dealer representatives, must be at least 18 years old and possess the legal authority to enter into the agreement. This is a standard legal prerequisite for online agreements.
  • Website Misuse: Dealers must not use the website in any manner that could damage, disable, overburden, or impair it, or interfere with others’ use. This ensures fair and stable access for all users.
  • Harassment and Offensive Content: Engaging in harassment, using offensive language, or impersonating others is strictly prohibited. Professional and respectful conduct is expected from all users, including dealer personnel.
  • Unauthorized Content Uploads: Uploading defamatory, obscene, threatening, illegal, or objectionable content is forbidden. This maintains a safe and professional online environment.
  • Commercial Solicitation: Using the platform to upload commercial content unrelated to the program or soliciting members for other services is not allowed. Focus should remain on the Costco Auto Program’s intended purpose.
  • Circumventing Security: Dealers must not attempt to circumvent security measures, access controls, or technological protections of the website. Maintaining website security is paramount.
  • Data Harvesting: Collecting content or information from CAP or users through automated means like bots or scrapers is prohibited without explicit permission. Data privacy and controlled access are key principles.

Privacy and Data Handling: Dealer’s Obligation

The agreement emphasizes the importance of privacy. Car dealers must understand and respect the privacy policy of Costco Auto Program and ensure their data handling practices are compliant.

  • Privacy Policy Consent: By using the website, users consent to the collection, use, and disclosure of personal information as described in the Privacy Policy. Dealers should familiarize themselves with this policy to understand data practices.
  • Responsible Data Use: Dealers receiving Guest information through the Costco Auto Program must handle it responsibly and ethically, aligning with the principles of the Privacy Policy and relevant data protection laws.

Disclaimers and Limitations of Liability: Protecting Costco Auto Program

Several clauses in the agreement focus on disclaimers and limitations of liability for Costco Auto Program. Dealers should be aware of these to understand the risk and liability landscape.

  • “As Is” Website Provision: The website is provided “as is,” without warranties of any kind, including error-free operation or freedom from harmful content. Dealers should acknowledge this condition of use.
  • Disclaimer of Warranties: Costco Auto Program disclaims all conditions and warranties, express or implied, including merchantability and fitness for a particular purpose. This limits CAP’s liability regarding website functionality and service performance.
  • No Liability for Damages: CAP will not be liable for indirect, special, consequential, or punitive damages resulting from website use or CAP services, even if advised of potential damages. This significantly limits CAP’s financial liability.
  • Data Accuracy: While CAP strives for accuracy, it makes no representations about the accuracy or timeliness of data accessed via the website. Dealers should verify critical information independently.
  • Events Outside Control: CAP is not liable for failures or delays in performance caused by events outside their reasonable control. Force majeure clauses protect CAP from unforeseen disruptions.

Limited License and Intellectual Property: Website Content Usage

The agreement clarifies intellectual property rights and grants users a limited license to use website content.

  • CAP’s Ownership: Costco Auto Program owns or has rights to all website content, including design, software, text, images, and other materials, protected by copyright and proprietary rights. Dealers should respect these intellectual property rights.
  • Limited License Grant: Users are granted a non-exclusive, limited, and revocable license to download and view website content for purposes stated in the agreement, not for other commercial uses beyond program participation. Unauthorized commercial use of website content is prohibited.

Termination and Modifications: Programmatic Changes

Costco Auto Program reserves the right to terminate the agreement and modify website features. Dealers need to be aware of these operational flexibilities.

  • Termination at CAP’s Discretion: CAP can terminate the agreement at any time, with or without notice, at their absolute discretion. This highlights the program’s operational control.
  • No Dealer Termination Right: Dealers cannot terminate the agreement; it remains in force unless terminated by CAP. This underscores the one-sided termination clause favoring Costco Auto Program.
  • Website Modifications: CAP may add, remove, or modify website features and services without notice or liability. Dealers should expect potential changes to website functionalities and program offerings.

Governing Law and Dispute Resolution

The agreement specifies the governing law and jurisdiction for dispute resolution.

  • Delaware Law: The agreement is governed by the laws of the State of Delaware. Legal disputes will be adjudicated under Delaware law.
  • Delaware Courts Jurisdiction: Users agree to the jurisdiction of Delaware courts for any disputes. This clause establishes the legal venue for resolving disagreements.

Conclusion: Dealer Readiness with Costco Auto Program Terms

For car dealers considering or currently participating in the Costco Auto Program, a comprehensive understanding of these terms and conditions is paramount. While this document is a standard legal agreement, its implications for data handling, liability, and program participation are significant. By acknowledging these terms, dealers can ensure they operate within the defined framework, maintain compliance, and effectively leverage the opportunities presented by the Costco Auto Program. Understanding these terms is not just about legal adherence, but about building a trustworthy and sustainable relationship with Costco Auto Program and providing excellent service to Costco members.

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