The Federal Trade Commission (FTC) has released a set of Frequently Asked Questions to clarify the requirements of the Safeguards Rule, mandated by the Gramm-Leach-Bliley Act, and its specific application to motor vehicle dealers.
The FTC aims to provide certainty in the marketplace while minimizing regulatory burdens on legitimate businesses. The agency has previously issued guidance on compliance with the Safeguards Rule, which mandates non-banking financial institutions, including motor vehicle dealers, to establish a comprehensive security program for protecting customer information.
In 2021, amendments were made to the Safeguards Rule to offer more detailed guidelines for financial institutions and ensure that the rule aligns with current technological standards. Further changes in 2023 required these institutions to report certain data breaches and security incidents involving customer information to the FTC.
Additional guidance regarding the Safeguards Rule can be found on the FTC's website.
The Federal Trade Commission is dedicated to promoting competition and protecting consumers through education. The FTC emphasizes that it will never request money, issue threats, instruct individuals to transfer funds, or promise prizes. More consumer-related information is available at consumer.ftc.gov. Fraudulent activities can be reported at ReportFraud.ftc.gov. For updates, follow the FTC on social media or subscribe for news alerts.
