NADA has released an updated version of A Dealer Guide to the FTC Safeguards Rule. The guide explains a dealership’s obligations under the Safeguards Rule and provides sample policies, links to regulatory resources on data security, and technical guidance.
The FTC Safeguards Rule contains a series of extensive data security requirements that dealers must comply with to protect consumer information. The rule also requires “financial institutions,” including dealerships and other entities that provide financial services, to report certain data security breach notifications to the FTC.
NADA updated the guide to reflect recent FTC guidance, updates to the breach notification form, and new best practices to comply with the rule.
Dealers are encouraged to review the guide and work closely with their vendors, IT professionals, attorneys, OEM partners, and others to comply with the rule.
The guide was updated in consultation with Duane Pozza, Wiley Rein; Michele Shuster, Mac Murray & Shuster LLP; Chris Cleveland, ComplyAuto; and James Crifasi, RedZone Technologies, LLC.
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