FTC Safeguards Rule
Learn how to comply with the Federal Trade Commission's updated data and information security requirements for dealers.
FTC Extends Safeguards Rule Compliance Deadline
The Federal Trade Commission announced the deadline for complying with the updated requirements of the Safeguards Rule was June 9, 2023.
The provisions of the updated rule specifically affected by the six-month extension include requirements that covered financial institutions.
Dealers are encouraged to continue in their efforts to expeditiously comply will all the new requirements of the Rule but should consult with their attorneys, service providers and IT professionals about the potential impact of this deadline extension.
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The FTC issued a complex set of new amendments to its Safeguards Rule, which require dealers to undertake a series of procedural, technical, and contractual steps to protect consumer and other personal data.
The amended Rule’s requirements had an original deadline of Dec. 9, 2022, but the FTC has extended that until June 9, 2023, for some of the updated requirements of the Safeguards Rule.
There is quite a lot that dealers must do to comply with the changes. NADA has a number of member resources to get you started, including a comprehensive Driven Guide for dealers that contains step-by-step instructions for compliance, as well as a series of links, template policies, exhibits, IT guidance and more. For more information about the Safeguards rule, email NADA Legal & Regulatory Affairs or call 800.557.6232.
NADA also has a host of NADA webinars, including:
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NADA is a long-time member of Standards for Technology in Automotive Retail (STAR) and supports STAR’s efforts in seeking to increase efficiency through the voluntary adoption of standards and the promotion of competition in the auto retail technology space.
As part of their efforts, STAR recently announced a set of uniform risk assessment standards that are intended to assist dealers and vendors alike in complying with certain requirements under the FTC’s Amended Safeguards Rule. Learn more about STAR’s free risk assessment questionnaire.
