Recently the staff at NADA shared some very positive news that will greatly help all dealers comply with an important but complicated policy change. On November 15, 2022, the Federal Trade Commission (FTC) announced that it is extending the December 9, 2022 deadline for financial institutions to fully comply with all of the requirements of the FTC’s Amended Safeguards Rule. Dealers will now have additional six months to ensure they are fully compliant with the new rule (June 9, 2023).
While you have been working hard to ensure compliance with the Safeguards Rule by the December deadline, NADA did not stop working on your behalf. NADA, along with our colleagues at several other trade associations, made one final request to the FTC for an extension of the stringent compliance requirements.
The latest effort was just one of the many advocacy touch points that our team at NADA made with the FTC following the initial announcement of proposed rulemaking in the fall of 2019. This extension would not be possible without your input and the work from our team at NADA.
The deadline extension is welcome, but I strongly encourage you not to wait. The requirements of the amended Rule are complicated, and they take time to achieve. While you should consult with your attorneys, service providers and IT professionals about the potential impact of this deadline extension, you should also continue your efforts to expeditiously comply with the new requirements of the Rule. June 2023 will be here before you know it.
To assist us with compliance, NADA has created a one-stop landing page for all NADA Safeguards Rule resources. You can find a number of various resources at www.nada.org/safeguardsrule, including webinars, guides, workshops, FAQs and more. We also encourage you to meet with vendors, OEMs and others at the upcoming NADA Show about Safeguards compliance.
For more information on the FTC Safeguards Rule, click here and check back often for updates. While not a full pull back of the new rule, the FTC’s extension is something to celebrate this holiday season and gives up more time to serve our customers and enjoy time with our families.