Both a federal agency and multiple national associations are urging the Federal Trade Commission to delay implementation of amended Safeguards Rule.

However, if the regulation stays on its course to be enforced beginning in December, the Texas Independent Automobile Dealers Association (TIADA) is trying to help operators prepare.

TIADA recently reiterated that it launched a dealer portal earlier this year to educate dealers across the country and develop an affordable way to address some of the new requirements found in the FTC rule.

TIADA explained that the FTC amended its Safeguards Rule earlier this year, creating new requirements for non-banking financial institutions, including dealerships. The new rules become effective in December and are much more specific than the old rules.

A few key provisions to the updated Safeguards Rule include:

• Each dealership must identify a “Qualified Individual” who is responsible for the program within the dealership and reports to the dealership’s board of directors or management annually,

• Dealerships will be required to have a written information security program and manual, 

• And dealerships will be required to have an employee training program.

TIADA pointed out the FTC is ramping up its enforcement efforts this year. According to its website, “The FTC has brought legal actions against organizations that have violated consumers’ privacy rights, or misled them by failing to maintain security for sensitive consumer information, or caused substantial consumer injury.”

Among other things, TIADA pointed out the dealer education portal was built to help dealers stay compliant.

“Our goal is for this training to be used as a tool for dealers to avoid inadvertent exposure of customer information, government enforcement actions, lawsuits, and bad press,” TIADA executive director Jeff Martin said in a news release.

TIADA is working closely with several state and national automobile dealer associations to create an affordable option for their dealer members and help drive revenue for the associations.

“We already have dealers from all over the country taking the course. If a dealer from Colorado takes a course through the portal, we send 50% of that revenue back to Colorado,” Martin said. “Since we already developed the course and have an online platform to deliver it, it just made sense to partner with other associations.” 

The safeguards compliance course through the dealer education portal was designed specifically with dealers in mind. There are two courses available, one for the dealership’s qualified individual and another for all other staff.

There is a volume pricing option available for any dealership with ten or more employees who need to take the course.

TIADA said the courses are easy, quick, affordable, and specifically designed for dealers. The program includes model safeguards policies and agreements for dealerships at no additional charge. 

For more information, go to www.txiada.org.