FTC Clarifies Financial Data Breach Rules for Auto Dealers (1)

Automobile dealers that provide leasing and financing for customers must comply with security best practices, even after an individual is no longer a customer, the Federal Trade Commission clarified in guidance Monday.

The FTC Safeguards Rule requires companies that handle financial data but aren’t subject to other regulators to report information as soon as possible about the scope of security incidents. The reporting applies to incidents affecting the unencrypyted data of 500 or more customers. The rule was amended in 2023 to include auto dealers that offer financing.

A sufficient information security program under the law should include safeguards including ...