Sarah Hutchins and Phil Fajgenbaum wrote an article in the National Association of Dealer Counsel's newsletter about the Federal Trade Commission's new cybersecurity requirements.
"Automotive dealers will soon fall under a stricter version of the Federal Trade Commission’s rule on safeguarding customer information," they wrote. "While many auto dealers are familiar with the old version of what’s commonly called the Safeguards Rule, the new version is broader in scope, both in terms of who it applies to and what it requires."
"On October 27, the FTC issued its final regulations amending the Safeguards Rule, which was promulgated by the FTC in 2002 pursuant to the Gramm-Leach-Bliley Act," they continued. "Much of the new version will go into effect 30 days after it is published in the Federal Register, which an FTC spokesperson said could happen in December. But auto dealers will have close to a year to meet what are likely to be the biggest compliance hurdles, including new requirements for risk assessments, testing, and training. Some of those requirements will be a heavy lift that dealer counsel should start planning for now."
Click here to read the full article.
The Defender is the the National Association of Dealer Counsel's official newsletter.