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A quick look at NADA activities

November 23, 2010

Warmer weather, the end of heavy conflict in Iraq and generous manufacturer incentives all are expected to deliver customers to dealer showrooms. Energy-efficient and crossover utility vehicles are expected to maintain or even increase in popularity, with renewed concerns about the world's oil supplies. While 2003 is not expected to be a blockbuster year, sales are expected to rise somewhat from the first quarter's pace. As I'm sure you're aware, the new Federal Trade Commission regulation on safeguarding customer information took effect May 23. Can you afford to lose $11,000 per day? That's how much dealers-"financial institutions" under the FTC's Customer Information Safeguards Rule-could be fined if found in violation. The rule is designed to thwart identity theft, which adversely affects the credit of thousands of Americans every year. Dealers must assess how customer information, particularly personally identifiable information obtained from customers, is used in their stores. You must appoint a dealership employee with the ability and authority to administer an information-security program; assess internal and external risks to customers' personal information; and design safeguards against those risks. You also need to oversee third-party providers' handling of dealership customers' personal information (through contractual agreements, for example) and reevaluate and adjust the program on an ongoing basis. Consult "A Dealer Guide to Safeguarding Customer Information" (available by calling the NADA at 800-252-6232 ext. 2, or by Or, refer to the FTC Web site, glbact/index.html.