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FTC checking for Safeguards Rule compliance

November 23, 2010
Dealers in New Jersey and Pennsylvania have been approached by the Federal Trade Commission to substantiate their compliance with the FTC's Safeguarding Customer Information Rule, which took effect in May. The FTC rule requires financial institutions, including dealers, to develop, implement and maintain a comprehensive, written Information Security Program to protect information they receive about their customers and the customers of other financial institutions. The FTC inquiries asked for copies of the dealers' Information Security Programs and other documents that demonstrate compliance with the Safeguards Rule's other elements. Documents requested can include those that show (1) the types of information collected, (2) the time frame in which a written information-security program was enacted, (3) descriptions of the security risks identified, and (4) whether the dealership's plans act against any identified risks.