Top Things an Auto Dealer Should Know About the FTC's Privacy Rule

The Federal Trade Commission (FTC) along with the Gramm-Leach-Bliley Act requires auto dealers to maintain confidential standards when dealing with individual’s financial privacy. Here are the top things an auto dealer should know about the FTC’s Privacy Rule.

• The privacy rule applies to all auto dealers who extend credit to buyers or help buyers attain financing for a vehicle purchase.




• The private information includes a person’s name, address, phone number and any additional information that may identify the individual.




• You will need to give a customer notice to privacy information once he/she provides you with private financial information. It is not necessary to give to every single person who enters your dealership information, but once you begin talking money, you should inform the individual of his/her rights to privacy.




• Privacy rules apply only when you are dealing with financial issues. If you send a list of customer names, address and phone numbers, you are not violating a privacy rule. If you add to that list how the vehicle was purchased, whether leased, financed or paid in cash, then you must follow privacy laws.




• Violation of privacy laws can result in fines from $10,000 - $100,000 per violation and may include prison time.