FTC Safeguards compliance help without confusion
Protect Your Dealership
Simplify FTC Safeguards Compliance
Don't Let a Data Breach Put Your Dealership in the Headlines
150+
Dealers Helped
5000+
Devices Protected
How to be a safer dealer
Three Steps to Protect Your Dealership:
Schedule a Compliance Review – We evaluate your current risks
Fix the Gaps – Our team builds a complete compliance plan
Stay Protected – Ongoing monitoring and training keep your data secure
The Problem
The FTC is watching, and so are your customers’ lawyers.
Data breaches are hitting dealerships across the country. When customer information leaks, law firms act fast to file class-action lawsuits.
Dealerships that ignore compliance face:
Major legal fees and settlements reaching into the millions
Regulatory fines up to $51,744 per violation
Damage to customer trust and brand reputation
Every dealership that collects personal or financial data is a target. Staying unprotected leaves too much to chance.
You're an Expert at Selling Cars, Not Compliance
The FTC Safeguards Rule has become a legal requirement for any dealership that handles customer financing.
Our team helps dealerships reach and maintain full compliance so your staff can stay focused on sales and service.
Brutal Truth
Regulatory Scrutiny and the Reality of Dealership Oversight
Auto dealerships remain one of the most closely watched industries by both federal and state regulators. The FTC, state attorneys general, and consumer protection agencies all monitor dealership operations for any sign of noncompliance.
Past industry behavior created a lasting reputation, and good intentions no longer matter—only documented proof of compliance does. Every dealership must be able to show written evidence of its safeguards, staff training, and risk assessments. Without documentation, regulators and lawyers assume the worst.
Enforcement
The Safeguards Rule is enforced under the FTC Act.
The FTC Safeguards Rule was created under the Gramm-Leach-Bliley Act (GLBA) but is enforced through the FTC Act.
That means that if a dealership knowingly or repeatedly violates the Safeguards Rule, the FTC can use the same Section 5 penalty authority—the one that carries up to $51,744 per violation.
So while the fine levels in that FTC press release were not aimed only at dealerships, they set the upper limit of what the FTC could apply in a case involving an auto dealer that fails to comply with the Safeguards Rule.
Who is a Financial Institution?
Dealerships qualify as “financial institutions” under the Safeguards Rule
If your dealership helps customers arrange financing or leases for more than 90 days, the FTC considers you a financial institution under the GLBA. That means your store is covered by the Safeguards Rule and subject to FTC enforcement—including those civil penalty limits.
Answers to Your
Frequently Asked Questions
We already have an IT company. Why do we need help with FTC Safeguards?
That is a great question, and it comes up often. Most IT providers handle general technology, but the FTC Safeguards Rule is about legal compliance, not just software or hardware. The rule requires a documented security program, written risk assessments, employee training, and ongoing proof that your dealership is protecting customer data. Our team works alongside your IT provider to make sure every legal requirement is covered and fully documented.
How serious are the penalties for not following the Safeguards Rule?
The FTC has already fined several dealerships and increased enforcement in 2024. Penalties can reach $100,000 per violation, and individual owners or officers can be fined as well. On top of that, law firms now file class-action lawsuits after data breaches. A single case can cost millions. Staying compliant protects your dealership from both fines and legal claims.
What does compliance actually look like for a dealership like ours?
Compliance is an ongoing system that includes:
A written risk assessment showing how customer data is stored and protected
Multi-factor authentication, encryption, and secure vendor contracts
Employee training on how to handle customer data safely
A plan for responding quickly to a cyber incident
We help dealerships put all of this in place and keep it current year after year.
What happens if we still have a breach after becoming compliant?
No security system is perfect, but compliance shows you took reasonable steps to protect customer data. That can make a major difference in court. If one of our clients is breached, we provide an expert witness at no cost to prove the dealership was not negligent. This helps reduce legal exposure and protects your reputation.
How much time and effort will this take from our staff?
Most dealerships are surprised by how little time it takes once there is a clear plan. We handle the technical work, write the policies, train staff, and manage the monitoring. Your team mainly reviews and signs off on what is required. The goal is to make compliance simple, repeatable, and stress-free.
What effect does our dealership size play in compliance?
Dealership size does not change the FTC requirements. Any store that helps customers arrange financing or collects personal financial details is considered a financial institution under the FTC Safeguards Rule. Smaller dealerships sometimes believe they are too small to be a target, but that assumption creates risk. Cybercriminals often go after smaller stores because defenses are easier to penetrate.
The same core safeguards apply to every dealership, regardless of size. Each business must have a written risk assessment, data encryption, employee training, vendor oversight, and an incident response plan. The difference is in how these safeguards are scaled and documented. A smaller dealership usually reaches full compliance faster, with fewer systems to manage and lower overall cost.
