The National Automobile Dealers Association submitted renewed objections to the Federal Trade Commission's proposed Safeguards Rule amendments, which beef up requirements for financial institutions to protect consumer data.
In a periodic review of its data protection guidelines, the federal watchdog proposed in March 2019 several amendments governing what steps financial institutions should undertake to reasonably prevent data breaches. Dealerships are obligated to follow the Safeguards Rule because of their indirect financing relationships with lenders and the fact they store sensitive consumer information in their software.
In its renewed comments, submitted Aug. 12, NADA urged the FTC to revisit its proposed changes and conduct a cost-benefit analysis.
"No financial institution or other business wants to suffer a data breach or other security incident, yet the emerging consensus is that there is simply no way to ensure with certainty that a breach will not happen," NADA said in a letter last week. "We urge the Commission to take a second look ... to take the time to first define what data must be protected under the Rule in light of today's market realities; to review the best practices in data security, and to analyze the net cost and security benefit of each of these best practices."