Understanding the FTC Safeguards Rule for Automotive Dealers‍

If your dealership handles customer financing, the FTC Safeguards Rule applies to you. It's not optional. Compliance is now a key part of running a trusted business in the automotive space.

This guide cuts through the noise and lays out what matters — what you're required to do, and how to get it done without drowning in paperwork.

‍Why This Rule Is a Big Deal

The Safeguards Rule requires businesses to develop and maintain a written information security program to protect customer data. That includes names, social security numbers, bank info — any personal financial details you collect during the sales or financing process.

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Failing to comply isn't just risky. It can result in fines, lawsuits, and lost trust. But compliance done right can also become a strength. Customers want to know their information is safe with you. Protecting that data earns trust and gives your dealership a competitive edge.

‍What Your Dealership Needs to Do

Here's what the FTC expects from you, broken down into clear, actionable steps:

‍1. Appoint a Compliance Lead

You need someone responsible for overseeing your dealership's data security program. This can be an internal leader or a qualified outside partner. The key is clarity. Who's accountable?

‍2. Write (and Maintain) a Security Plan

The Written Information Security Plan is the foundation. It outlines how your dealership identifies risks, protects customer information, and responds to security incidents. This plan should be tailored to your business, not a copy-paste template.

‍3. Conduct Regular Risk Assessments

What could go wrong? Where are you vulnerable? Your team needs to regularly evaluate internal systems, vendor access points, and employee processes. These risk assessments help prioritize fixes before problems arise.

‍4. Train Your Team

Your employees handle sensitive information every day. Training them to spot phishing attempts, manage data securely, and follow internal protocols is critical. Make this part of onboarding and ongoing operations.

‍5. Vet Your Vendors

Third-party vendors that touch your systems or data must meet your security standards. Review their practices, update contracts to include compliance expectations, and audit their performance regularly.

‍6. Monitor and Test Security Measures

It's not enough to set up protections and hope for the best. Your dealership needs ongoing testing and real-time monitoring to identify vulnerabilities and stop issues before they escalate.

‍7. Keep a Paper Trail

Document everything - your WISP, training records, vendor assessments, and audit results. This shows regulators you're serious and gives you a clear record if an incident occurs.

‍Quick Checklist for Compliance

• Appoint a qualified compliance leader
• Develop a dealership-specific WISP
• Run regular risk assessments
• Ensure third-party vendors meet security standards
• Train employees on security best practices
• Implement continuous testing and monitoring
• Document all compliance activities

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Failure to comply with the FTC Safeguards Rule can result in significant penalties, including fines and potential legal action. More importantly, implementing these safeguards helps protect your customers' sensitive information and maintains the trust they place in your dealership.

‍SecurePath Does More Than Check the Box

Most "compliance tools" stop at documentation. SecurePath, powered by OCD Tech, goes further. We help dealerships build real security programs - not just pass audits.

Backed by 12+ years in cybersecurity, SecurePath combines compliance, real-world threat defense, and ongoing support. We're already helping auto dealers protect customer data, meet insurance requirements, and stay ready for audits.

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If you're unsure where to start, or if your current setup truly meets the new standards, let's talk.

‍Protect Your Business and Earn Customer Trust

Your customers expect more than a sale. They expect their personal information to be treated with care. SecurePath helps you meet that expectation — and exceed it.