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Update: ADP sale of dealership data to Carfax

November 22, 2010

As was reported in recent editions of this newsletter, ADP participated in a trial program with Carfax in which ADP provided certain dealership service records toCarfax for inclusion in Carfax’s vehicle history reports. 

 

ADP representatives said they believed the program would benefit dealers because it has been shown that used vehicles with a vehicle history report tend to result in higher retail sale prices, but ADP terminated the program after receiving negative reaction from several dealers. 

This program, which ran for a limited time and was terminated in March, was conducted pursuant to the dealership consent provided by Paragraph 9.D. of ADP’s Master Services Agreement with its customers.

 

ADP has advised the CATA that, upon the request of any dealer, ADP will amend Paragraph 9.D. to delete this consent. The key language in the amendment states that "ADP agrees not to access Client data, without Client’s consent, except to the extent that such access is required by ADP to provide Client (i) maintenance and support services; (ii) pull information for billing purposes; (iii) electronic transfer of releases and update tapes; and (iv) assistance in day-to-day operations, as requested by Client." 

CATA dealers are encouraged to request the amendment from their local ADP sales representative.

 

ADP officials confirmed that the data contained within a dealers’ DMS is the property of the dealership, and this has always been ADP’s position with regards to this topic.

 

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