Your dealership’s privacy notice may seem like just another piece of paperwork, but it’s a vital part of your compliance plan. The federal and state consumer protection regulations that require privacy notices address a wide range of your dealership’s data handling and storage practices. Let’s go over the basics you need to know about them.
Why Are Privacy Notices Necessary?
Numerous laws and regulations require that dealers create and present a notice to inform consumers of their practices for collecting, using and sharing non-public personally identifiable information.
Privacy notices are generally based on the combined requirements of Fair Credit Reporting Act (FCRA) and the Gramm-Leach-Bliley Act (GLB). However, dealerships should also take into account federal laws including the FTC Privacy Rule, FTC Affiliate Marketing Rule and the Driver’s Privacy Protection Act (DPPA) when creating their privacy notices.
What Should Privacy Notices Include?
Who Should Get A Privacy Notice?
You should give a privacy notice to every consumer who gives your dealership personal information, regardless of whether they end up purchasing a product or service.
When Should A Consumer Get Their Privacy Notice?
As the previous item implies, your dealership should be prepared to present privacy notices to potential customers before they become customers. That means consumers should receive a privacy notice before the dealer plans to collect, use or share their information. The timing can be tricky depending on how the consumer first begins interacting with your dealership, but be prepared to provide a privacy notice when someone first gives you their personal information, or as soon as possible after that. An integrated compliance software solution should provide you with a disclosure alert to ensure that you provide the privacy notice to the consumer at the proper time.
Where Have Privacy Notice Requirements Gotten Broader?
Want to learn more about complying with privacy and customer information sharing regulations? Check out the 2021 Dealertrack Compliance Guide. Register today to access the guide.