As of June 9, 2023, dealers and covered entities should be fully compliant with the FTC’s Amended Safeguards Rule. This rule, as outlined on the National Automobile Dealers Association (NADA) website, mandates that dealers must maintain safeguards to protect the security of customer information and” periodically assess the security practices of service providers”.
These requirements pose a significant challenge: do dealers know where all their data is, especially if they ship cars? More importantly, are their service providers, including transporters, compliant with the rule? Failure to comply with the new Safeguards Rule could trigger a review by the FTC which could result in penalties and fines.
The issue of data security is particularly pertinent in the context of car shipping. When dealers ship cars, they often share sensitive information with service providers, including customer details such as names, addresses, and vehicle specifications. If these service providers are not compliant with the FTC’s Amended Safeguards Rule, the data could be at risk, leading to potential breaches and significant penalties for the dealers.
In the face of these challenges, RunBuggy emerges as a beacon of compliance and security. As a fully compliant service provider, RunBuggy meets the FTC’s Safeguards Rule including SOC 2 standards, ensuring that it manages customer data securely and effectively. Dealers can gain confidence that their data is being handled responsibly and in accordance with the FTC’s Amended Safeguards Rule when they need to ship cars.
Moreover, RunBuggy is a proud member of the Standards for Technology in Automotive Retail (STAR). As a STAR member, RunBuggy champions the uniform risk assessment standards that are designed to assist dealers and vendors alike in complying with the FTC’s Amended Safeguards Rule. This commitment to industry standards further underscores RunBuggy’s dedication to data security and compliance.
RunBuggy’s capabilities extend beyond mere compliance, helping to address the requirement to ensure data is protected according to the FTC standard. By leveraging advanced security measures and robust data management practices, RunBuggy ensures that all data, especially sensitive information shared during car shipping, is protected to the highest possible standard.
In a world where data security is paramount, compliance with regulations like the FTC’s Amended Safeguards Rule is non-negotiable. Dealers must ensure that they, and their service providers, are fully compliant to protect their data and avoid potential penalties. With its robust compliance credentials and commitment to data security, RunBuggy provides a solution that dealers can trust. By choosing RunBuggy, dealers can focus on what they do best – selling and shipping cars – safe in the knowledge that their data is in good hands.
For more information on the FTC’s Amended Safeguards Rule and the importance of compliance, check out this informative YouTube video. And if you’d like a demo of RunBuggy’s technology platform, please visit runbuggy.com or contact our team today