Privacy4Cars White Papers

Academically-reviewed paper by Eric Johnson, Partner, Hudson Cook LLP, and Andrea Amico, CEO, Privacy4Cars.

Originally published on Conference on Consumer Finance Law (CCFL) in the 2022 volume 76 numbers 1 & 2.

This paper reviews how vehicles may collect and allow access to consumer’s Personal Information (PI) and the legal implications, issues, and action automotive dealerships, banks, auto finance companies, credit unions, and other financing sources, but also insurance companies, rental car, and fleet companies should consider. The paper describes the main types of PI collected by vehicles, and how this information is regulated at the federal and state level, and lists a number of legal precedents in courts, including 9-figure settlements.

The paper further explores the duties and responsibilities of companies in regards to consumer PI captured by vehicles, and suggests a series of actions these companies should take, first and foremost of which should be establishing a robust and auditable process to delete data from vehicles.

On June 9th, 2023, the Federal Trade Commission revision of the Safeguards Rule will come into effect.  Entities regulated under Gramm-Leach-Bliley are required to develop, implement, and maintain a comprehensive system to safeguard consumers’ Nonpublic Personal Information (NPI, or PI) they come into possession of. This white paper provides a detailed analysis of the Rule update and its effect on auto dealerships, and specifically focuses on how to safeguard the PI (including sensitive geolocation and phone data) that is frequently stored in vehicles dealerships own, including lease returns, loaners, trades, etc. While this white paper does not constitute legal advice, dealerships can find valuable insights to design, implement, and augment their own compliance program, including sample language for disclosures, notices, and record keeping documents.

For the first time in history, suppliers to dealerships, auto finance companies, and other entities regulated under Gramm-Leach-Bliley will also have to comply with a particular section of that regulation starting on June 9th, 2023: the updated Safeguards Rule. In this white paper we specifically address those suppliers who have custody or otherwise have physical access to vehicles owned by GLBA-regulated entities (such as recovery agents, auto auctions, vehicle inspection companies) play a role in the overall Safeguards compliance. While this white paper does not constitute legal advice, remarketing and dealership suppliers who handle vehicles can find valuable insights to design, implement, and augment their own compliance programs.