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NADA Dealer Alert: Beware of FTC Imposters

Jun 07, 2004

By now, all dealers should be aware of their obligations under the Gramm-Leach Bliley Act’s Privacy Rule and Safeguards Rule.Dealers are also likely aware that the Federal Trade Commission (FTC) is the federal agency responsible for enforcing these rules. The National Automobile Dealers Association (NADA) has reported that two men purporting to work for the FTC visited at least one new car dealership to inquire aboutthe dealership’s compliance with the Safeguards Rule and other federal privacy regulations.According to the FTC, its staff is not currently conducting on-site investigations of automobile dealerships to determine their level of compliance with its Regulations.In general, the FTC does not conduct on-site visits in connection with investigations with out first contacting the business either in writing or by telephone. If your dealership receives a visit from persons identifying themselves as FTC employees investigating your dealership’s “privacy compliance”, please: ·Ask for their names and telephone numbers. ·Do not disclose any information—and certainly don’t disclose any customer information—unless you are able to confirm that the visitors are in fact FTC Personnel. ·Notify NJ CAR of the visit, so that the appropriate authorities can be contacted.