The FTC amended the Safeguards Rule that affects dealerships. This amendment goes into effect on May 13, 2024.
May 13, 2024
By Barrie Charapp Beaty
Charapp & Weiss, LLP
bbeaty@cwattorneys.com
The FTC amended the Safeguards Rule that affects dealerships. This amendment goes into effect on May 13, 2024.
Under this amendment, dealerships are covered entities and therefore must submit notice to the FTC if the dealership has a breach of customer information of at least 500 customers. The notice must be sent within 30 days of discovery of a triggering breach. The notice must provide:
- the name and contact information of the reporting dealership;
- a description of the types of information that were involved in the breach;
- if the information is possible to determine, the date or date range of the breach;
- the number of customers affected;
- a general description of the breach; and
- if applicable, whether any law enforcement official has provided the dealership with a written determination that notifying the public of the breach would impede a criminal investigation or cause damage to national security, and a way for the FTC to contact the law enforcement official.
The FTC requires that the notice be submitted electronically through a form located on its website, https://www.ftc.gov.