![\"Gramm-Leach-Bliley](\"https:\/\/www.autoraptor.com\/wp-content\/uploads\/2016\/07\/photodune-13801728-smiling-businessman-undersign-a-car-contract-at-new-car-showroom-xs.jpg\" "\\"\\"")
<\/h2>\nLet\u2019s face it: You may run one of the top automotive dealerships in your area, but if you aren\u2019t prioritizing compliance<\/a> and keeping up with industry regulations<\/a>, you won\u2019t be in business much longer.<\/p>\n One of the many standards you must meet and stay on top of includes complying with the Gramm-Leach-Bliley Act. The Gramm-Leach-Bliley Act<\/a>, more formally known as the Financial Services Modernization Act of 1999, includes a Privacy of Consumer Financial Information Rule (Privacy Rule) that sets forth requirements for companies that offer consumers any kind of financial products or services.These businesses must explain their information-sharing practices and the steps they take to protect sensitive data to customers.<\/p>\n Any auto dealers that provide credit, give financial advice, or arrange financing or leasing must pay attention to Gramm-Leach-Bliley Act compliance. If this includes you, you need to tell your customers what information you are collecting, who you share it with, and how you protect it.<\/p>\n Every dealership is different, and requirements and exceptions may vary, but in general, here\u2019s how the Privacy Rule applies in most situations.<\/p>\n First and foremost, you need a privacy notice. Your privacy notice must give customers a \u201cclear and conspicuous\u201d written notice that describes your dealership\u2019s privacy policies and practices. The Federal Trade Commission (FTC) says<\/a> that your notice must include (where it applies to you) the following information:<\/p>\n If you\u2019re disclosing nonpublic personal information to nonaffiliated third parties under certain exceptions of the Privacy Rule, you must write that the disclosures are made \u201cas permitted by law.\u201d<\/p>\n If you\u2019re disclosing nonpublic personal information to nonaffiliated third parties and it doesn\u2019t fall under any exceptions, you need to provide an explanation of consumers\u2019 and customers\u2019 rights to opt out of these disclosures.<\/p>\n You don\u2019t have to hand your privacy notice out like a free gift to everyone who walks onto your lot. In order to stay on the up-and-up with Gramm-Leach-Bliley Act compliance, the privacy notice should be given to anyone who gives you personal information in connection with a potential transaction and you plan on sharing that information with a nonaffiliated third party.<\/p>\n If you end up arranging credit or leasing for a customer, you must give them your privacy notice no later than at the time of signing any binding contracts or agreements. There are several exceptions to this, though, so you are encouraged to do further research to see how this may apply to your dealership.<\/p>\n If you assign the retail installment contract to a third party lender, your obligation to provide future privacy notices passes on to the lender (you still have to give them that initial privacy notice, however.) If you extend credit to buyers, keep the contracts, and do not assign them to other lenders, the person is still considered to be your customer. In this case, your obligation is to give them an initial privacy notice, an opt-out notice (if applicable), and an annual notice for as long as they are your customer.<\/p>\n It may seem like another thing on your \u201cto do\u201d list, but Gramm-Leach-Bliley Act compliance doesn\u2019t just protect you \u2014 it protects your customers as well. With so many data breaches and incidents of identity theft<\/a> occurring all the time, you owe it to your customers to show them that you don\u2019t only value their business, but you respect their privacy and work hard to keep their personal information protected.<\/p>\n If you would like to learn more about Gramm-Leach-Bliley Act compliance and what your dealership needs to do, the FTC has created a helpful list of FAQs specifically for auto dealers: FTC\u2019s Privacy Rule and Auto Dealers<\/a>.<\/p>\nFollowing the Privacy Rule for Gramm-Leach-Bliley Act compliance<\/h3>\n
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Who to share the privacy notices with<\/h3>\n
Stay on top of Gramm-Leach-Bliley Act compliance<\/h3>\n
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