Code of Conduct

1. Purpose and scope

Car Broker Network is a private accreditation and standards organization for California auto brokers. We exist because the state licenses and bonds brokers but does not police their day to day honesty, and because dealers have had no shared, reliable way to tell a trustworthy broker from one who is not.

This Code applies to every accredited broker, every person acting on an accredited broker's behalf, and every transaction a member conducts while holding accreditation. Accreditation is a statement that a member meets this standard. It is not a license, and it does not replace any obligation a broker owes under California law.

2. Eligibility and verification

Accreditation is open to brokers who hold the credentials California requires and who pass our verification before activation. To be accredited and to remain accredited, a member must:

• Hold a valid California dealer license with an active autobroker endorsement.
• Maintain the $50,000 surety bond California requires of licensed brokers.
• Pass the background check we conduct at the time of application.
• Sign and abide by this Code of Conduct.

Membership begins only after Car Broker Network reviews and approves the application. Payment of the annual membership fee does not by itself grant accreditation. We verify credentials before activation and may re-verify them at any time during membership.

3. Core principles

Three principles sit behind every rule in this Code.

Honesty

A member tells the truth to consumers, dealers, lenders, and Car Broker Network. A member never creates, alters, or submits a false document, and never makes a promise the member does not intend or is not able to keep.

Fiduciary duty

A California autobroker owes the buyer a fiduciary duty under Vehicle Code section 11735. An accredited member treats that duty as the floor, not the ceiling. The member puts the client's interest ahead of the member's own commission on every deal.

Transparency

A member discloses how the member is paid, who the member represents, and any interest the member has in the transaction, in plain language and before the consumer is asked to commit.

4. Standards of conduct

Accredited members agree to the following in every transaction.

• Accurate representation. Describe vehicles, pricing, fees, financing terms, and availability truthfully. Correct any statement that becomes inaccurate as soon as you learn of it.
• Written agreements. Put the scope of your service and your fee in writing before work begins, and give the consumer a copy.
• Fee and compensation disclosure. Disclose every fee the consumer will pay and every form of compensation you receive, including any payment, incentive, or markup from a dealer or lender.
• Honest documents. Submit only genuine, accurate documents to dealers, lenders, and government agencies. Never alter income, identity, mileage, condition, or signature.
• Care with funds. Handle any deposit or payment that passes through you promptly and only for its stated purpose, and account for it on request.
• Conflicts of interest. Disclose in writing any ownership, family, or financial relationship with a dealer, lender, or vendor involved in the deal.
• Truthful advertising. Keep marketing accurate. Do not advertise vehicles, prices, or terms you cannot honor, and do not imply a government endorsement you do not have.
• Privacy. Collect only the consumer information a transaction requires, protect it, and use it only for that transaction.
• Cooperation. Respond truthfully and promptly to a Car Broker Network inquiry about your conduct.

5. Prohibited conduct

The following are grounds for a violation and, on a confirmed second offense, for removal from the network.

• Fraud, forgery, or any falsified or altered document.
• Undisclosed markups, kickbacks, or compensation that the consumer is not told about.
• Bait and switch: advertising one vehicle, price, or term and delivering another.
• Misrepresenting a vehicle's condition, history, mileage, or title status.
• Charging fees that were never disclosed in writing.
• Misusing or failing to account for consumer funds.
• Operating without a valid license, endorsement, or bond.
• Retaliating against anyone who reports a concern in good faith.
• Claiming or implying that Car Broker Network accreditation is a government license or endorsement.

6. Working with dealers

The network exists so dealers can work with brokers they trust. Accredited members deal with dealers in good faith: they represent their buyers and their documents honestly, they honor the terms they agree to, and they do not pressure a dealer into a transaction built on a misstatement. A dealer who joins the network may report a member who breaks these standards.

7. Working with consumers

The consumer is the member's client. Members give consumers honest advice, a clear written scope and fee, and full disclosure of how the member is paid. Members never use high pressure tactics, never sign on a consumer's behalf without written authority, and never place their commission ahead of the consumer's stated needs and budget.

8. Reporting and enforcement

Any dealer, consumer, or member may report conduct that appears to break this Code. Reports should describe what happened and include supporting evidence where possible.

Car Broker Network reviews each report, gives the member a chance to respond, and decides whether a violation is confirmed. We may dismiss a report, issue a warning, or confirm a violation based on the evidence.

Decisions are made in the reasonable judgment of Car Broker Network. Accreditation is a private membership, and the network may decline or end a membership consistent with this Code and its membership terms.

9. Ongoing member obligations

• Keep your California dealer license, autobroker endorsement, and surety bond valid and current.
• Tell Car Broker Network promptly if your license, endorsement, or bond lapses, or if you are charged with or found to have committed a relevant offense.
• Keep your contact and service area information accurate in your member profile.
• Renew your membership each year. Membership runs for twelve months from activation and renews at the published annual fee.

10. Changes to this Code

Car Broker Network may update this Code as the program grows or as the law changes. We will post the current version here with its effective date, and continued membership after a change means the member accepts the updated Code.