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Sam
Sam, Attorney at Law
Category: Legal
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Experience:  More than 20 years of experience practicing law.
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Are referral fees or birddog fees paid by auto dealerships

Customer Question

Are referral fees or birddog fees paid by auto dealerships legal in Maryland?
Submitted: 5 months ago.
Category: Legal
Expert:  Sam replied 5 months ago.

Hello

This is Samuel. I find no laws in the Maryland Code prohibiting such fees.

Expert:  Sam replied 5 months ago.

Generally, however, if a consumer is offered a discount on a car for a referral that discount cannot be contingent upon a sale being made by any of the referrals.

Expert:  Sam replied 5 months ago.

In other words, if the dealer says I will give you another $100 discount for every name you give me as a referral, that price must stick and it becomes the contract sales price.