Auto dealerships collect some of the most sensitive consumer information in the retail space. With high-value transactions and detailed financial data, dealers face significant obligations to protect that information. A wide range of laws and regulations govern how dealers must collect, share, process, and safeguard consumer information, including:

• The Gramm-Leach-Bliley Act
• The FTC Safeguards Rule
• The FTC Red Flags Rule
• The Financial Privacy Rule
• The FTC Disposal Rule
• Various state privacy laws

The consequences of non-compliance are severe. A violation can be considered an unfair and deceptive practice under Section 5 of the FTC Act, carrying penalties exceeding $55,000 per violation. When regulators stack multiple violations together, dealers can quickly face multi-million-dollar fines.

With so much at stake, where should dealers begin? The foundation of privacy and safeguards compliance starts with building the right team.

Building Your Privacy and Safeguards Team

Establishing a dedicated Privacy and Safeguards team is the first critical step in achieving compliance. This team will implement, oversee, and enforce your written information security program and privacy initiatives.

At minimum, your team should include:

While KPA can’t replace your internal Privacy and Safeguards team—your team must include your own people—we provide the guidance and expertise to help your team succeed.

Our specialized consultants help you:

• Define appropriate team roles and responsibilities
• Establish effective meeting cadences
• Develop a roadmap for program implementation
• Provide industry-specific training for team members
• Guide your qualified individual through their responsibilities
• Offer ongoing support as regulations evolve

With KPA as your compliance partner, your privacy and safeguards team won’t have to figure everything out independently. We’ve helped thousands of dealerships establish and maintain effective compliance teams that protect customer information and minimize regulatory risk.