Today, the FTC released Frequently Asked Questions that discuss the requirements of the Safeguards Rule, which was mandated by the Gramm-Leach-Bliley Act, and how it specifically applies to motor vehicle dealers.
The FTC is committed to providing certainty to the marketplace and ensuring that it administers its regulations in a manner that minimizes burden to legitimate businesses. To that end, the FTC has in the past issued guidance on how to comply with the agency’s Safeguards Rule, which requires non-banking financial institutions, including motor vehicle dealers, to develop, implement, and maintain a comprehensive security program to keep their customers’ information safe.
In 2021, the FTC amended the Safeguards Rule to provide more specific guidelines for financial institutions and to ensure that the Rule keeps pace with current technology. In 2023, the agency made additional changes to the rule to require financial institutions to report to the FTC certain data breaches and security incidents involving their customer information.
Additional guidance about the Safeguards Rule is available on the FTC’s website.