Auto Dealer? Interested in the Safeguards Rule? The FTC has some FAQs for you

If you’re a regular reader of this blog, or you’re someone tuned in to how financial institutions are required to maintain safeguards to protect their customers’ information, you might already know about the FTC’s Safeguards Rule and what businesses need to know. Those in the know know that the Safeguards Rule generally applies to any financial institutions under the FTC’s jurisdiction. But auto dealers are the only financial institutions who also fall under the FTC’s Privacy Rule.

The FTC recently released a set of Frequently Asked Questions to help auto dealers comply with the FTC’s amended Safeguards Rule. This FAQ walks you through big-picture questions about the Safeguards Rule, including:

• What does the Safeguards Rule require auto dealers to do?
• What auto dealers does the Safeguards Rule apply to?
• What kind of customer information does the Safeguards Rule cover?

You’ll also find some hypotheticals specific to auto dealer-related situations. For example:

• How the Safeguards Rule applies to auto dealers’ relationships with the OEMs (Original Equipment Manufacturers).
• How the Safeguards Rule requirements differ from those of the Privacy Rule.
• What to keep in mind if auto dealers use one combined database to store all the information about people who come into their dealership.

There’s much more in the new FAQs, as well as the earlier, general publication, FTC Safeguards Rule: What Your Business Needs to Know. These publications can help auto dealers understand both the amended Safeguards Rule and how it applies to your business – so please check them out.