Service Provider Dealer Data Access Addendum

The below sample "Service Provider Dealer Data Access Addendum" (“Addendum”) was created by Legal & Regulatory Affairs for dealers to use with their third party service provider vendors. NADA provides the sample Addendum as a compliance tool and NOTHING IN THE ADDENDUM IS INTENDED TO BE LEGAL ADVICE.

In August 2013, NADA Legal and Regulatory Affairs sent a memo to all NADA members that contained an overview of the primary regulatory issues surrounding Dealer Data, numerous practical tips for dealers to consider when protecting their data, as well as samples of the contract provisions required under federal law when a dealer wishes to allow access to Dealer Data with a third party service provider. The Addendum is a follow up to that guidance, and was drafted for dealers in an effort to clarify and simplify dealers’ obligation to ensure that their applicable vendor contracts contain certain provisions required under federal law.  It is a sample only, may not be appropriate in all circumstances, and it should be used only as a guide – dealers should consult with their counsel in deciding whether to adopt the Addendum in whole or in part, or whether to amend or edit the Addendum accordingly. Adoption of the Addendum is not the only way dealers can meet their legal obligations and it may not be right for every situation. However, if they choose, dealers can use the Addendum to amend their service provider legal agreements to satisfy the applicable contractual requirements.

We encourage you to review the attached Addendum with your counsel, and if applicable, to present the Addendum to your service provider vendors for signature. You will also find a link below to a guidance document entitled “10 Steps Dealers Need to Take to Protect Dealer Data”  which provides a summary of some practical advice for dealers and their advisors. We encourage all dealers to review this document and implement the steps outlined therein.