FTC Safeguards Rule arrives; check your compliance at NIADA Convention

The building of the Federal Trade Commission in downtown Washington DC.

The Federal Trade Commission’s Safeguards Rule arrived Friday, June 9.

Financial institutions, including auto dealers, must maintain a comprehensive security program to keep their customers’ information safe.

The updated rules approved in October 2021 require financial institutions to designate a “qualified individual” to oversee their security program, develop a written risk assessment, limit and monitor who can assess customer information, encrypt information, train security personnel, develop a response plan, assess security practices of service providers and implement multi-factor authentication for any individual accessing customer information.

Penalties can range up to $46,517 per violation.

NIADA understands the impact this rule can have on independent auto dealers and has focused a substantial portion of its annual Convention and Expo, June 19 to 22 at the Wynn in Las Vegas, to make sure dealers have the information they need to be in compliance.

NIADA will be hosting sessions with members of the Federal Trade Commission (FTC), Consumer Finance Protection Bureau (CFPB) and Internal Revenue Service (IRS).

Dan Dwyer, an attorney in the Division of Financial Practices at the Federal Trade Commission will hold two sessions, 2:15 p.m. Wednesday, June 21, and 10 a.m. Thursday, June 22. Dwyer, who has worked on a variety of consumer credit and financial services issues, including debt collection, mortgage advertising and automobile sales and financing, will be available to address questions on the Safeguards Rule and other rules affecting the independent auto industry.

There are also additional educational sessions on compliance with the new rule among the 77 breakout sessions.

Todd Goodnight, Chief Technology Officer for PassTime GPS, and Corinne Kirkendall, EVP of Compliance and Regulatory Affairs for Passtime, will hold a session at 2:15 p.m. Wednesday, June 21 “Did your service provider miss the deadline? Safeguards and compliance overview.”
At 3:15 p.m. Wednesday, June 21, Eku Williams, Partner and Practice Leader at CyberSure, will present “How to prepare your dealership for the FTC Safeguards Rule.” Eric Johnson, partner at Hudson Cook, will give the CFPB and FTC Regulatory, Litigation and Enforcement update at 4:15 p.m. Wednesday, June 21.

After getting your plan in place, hear from the experts, including a representative of the FTC about the rule and regulation at the NIADA Accelerate 2023 Convention and Expo. This is an opportunity dealers shouldn’t miss.

Register now at niada.com/convention.

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