FTC Safeguards Rule Compliance for Auto Dealerships
Protect Your Dealership. Avoid Fines. Build Trust.
Auto dealerships are now required to comply with the FTC’s Safeguards Rule, which mandates strict cybersecurity controls to protect customer data like SSNs, credit reports, and bank details. Failure to comply can result in fines of up to $51,744 per violation.
We know you might be thinking, we already have an IT team. Isn’t that enough?
The truth: traditional IT keeps your systems running. But cybersecurity, especially for FTC Safeguards Rule compliance, requires specialized expertise: risk assessments, threat modeling, vulnerability testing, incident response plans, and more. Our team works with your IT staff, as unbiased experts, building and validating a secure environment. They can’t audit themselves. That’s where we step in.
Key Regulations & Compliance Requirements
FTC Safeguards Rule - GLBA (Gramm-Leach-Bliley Act)
This is a core component of protecting consumer financial information. It's a Federal regulation that requires financial institutions (and increasingly, businesses handling financial data) to maintain safeguards to protect customer information. This is a major focus of our testing. We'll assess your compliance with the Safeguards Rule, including risk assessments, policies & procedures, IT security controls, and employee training.
CCPA (California Consumer Privacy Act)
Important for California-based dealerships. This regulation gives California residents rights over their personal data, including the right to know what's collected, request deletion, and opt out of data sales. Dealerships must implement proper data management practices to comply with these consumer privacy rights.
PCI DSS (Payment Card Industry Data Security Standard)
Crucially Important. This is mandatory if you accept credit card payments. You'll need to demonstrate you're protecting customer payment information.
What Is the FTC Safeguards Rule, And Why Should Dealerships Care?
The FTC Safeguards Rule is more than just another regulation, it’s a legal obligation for automotive dealerships that handle consumer information in connection with financing. If your dealership collects names, addresses, Social Security numbers, income verification, or credit histories for financing or leasing, you are required by law to comply.
Updated in 2021 and enforced as of June 2023, the Safeguards Rule mandates that dealerships implement a comprehensive, written information security program designed to protect customer data from theft, misuse, and unauthorized access.
What Does the Rule Require?
Your dealership must implement a written, risk-based information security program that includes:
✅ Appointing a Qualified Individual to manage the program
✅ Conducting a Written Risk Assessment tailored to your dealership’s environment
✅ Implementing Technical and Administrative Safeguards, such as:
Encryption of customer data
Multi-factor authentication (MFA)
Secure user access controls
Employee cybersecurity training
Vendor due diligence and contract management
✅ Ongoing Monitoring and Penetration Testing
✅ A Documented Incident Response Plan
✅ Annual Reporting to Ownership or the Board
What Happens If You Don’t Comply?
Failing to comply with the Safeguards Rule isn’t just a risk—it’s a liability. The FTC has started actively enforcing the rule and issuing penalties to businesses that fall short.
Penalties for non-compliance may include:
💰 Civil penalties of up to $50,120 per violation, per day
🧑⚖️ Lawsuits from affected consumers
📣 Public disclosure of your dealership’s data breach
🏚️ Loss of customer trust and long-term reputational damage
The FTC has made it clear: Dealerships are in the crosshairs, and “checking the box” isn’t enough. Compliance requires a documented, actively managed cybersecurity program—not just a firewall and antivirus.
We Make Compliance Attainable
At Prometheus Security, we work with your existing IT team—or fill the gap if needed—to develop, implement, and manage your FTC Safeguards Rule compliance program. We’re not here to replace your IT; we’re here to protect what they can’t audit themselves.
Don’t risk five-figure fines, lawsuits, or public exposure.
Let’s build your compliance roadmap together.