Proposed changes to two rules under the Gramm-Leach-Bliley Act will require dealers to step up consumer data protection, experts say.
Dealers should be most concerned about proposed amendments to the Safeguards Rule, according to compliance experts, which would require the use of encryption and multitiered authentication for access to sensitive customer data and periodic reports on customer data protection to the dealership group's leadership team.
Still, many of the proposed changes require dealers to adopt policies that compliance experts have recommended for years, and most larger dealership management systems already include some of the proposed data safeguards.
David Lincicum, a senior attorney in the Federal Trade Commission's Division of Privacy and Identity Protection, said the impact of the changes would depend on the dealership.
"Some will have a lot to do, and some will have nothing to do," Lincicum told Automotive News.