Data Breach Violations Can Cost Dealerships Millions
Transcript
Kelly : So let’s get right to the meat of the matter. There are data security issues galore in the retail auto industry. I’d like to take them one by one. Spooky risk numero uno, is on the dealership side whereby the government can hold a dealership responsible for any consumer data that gets stolen. If it’s a total data breach, they could be fined a ton of money for each individual customer that loses their data, and they could go back 10 years on it. Please explain how costly that can be to a dealership? If the state decides to go hardball, and in the worst case, could that put dealerships out of business?n
nKen : Well, $46,000 per instance. So it doesn’t take much math to figure out how much it would take to, you know, put a dealership out of business. That’s a pretty big, hefty fine. And, yeah, so I think they’re really right now with the current landscape of the government. They are very consumer protective. And I think the concept is correct, right. We need to protect consumer data inside of dealerships. And there needs to be some standard policies and some standard base configurations in place to ensure that the consumer information is being safeguarded. n
n And so I think the concept is correct. I’m not sure I agree with the penalties. Or, you know, the enforceability. They want dealers to have these things in place by the end of the year. But yeah, it’s very impactful. And it’s not an easy lift to get where the government wants you to be either. So yeah, it’s, it’s pretty significant.n
nKen : Well, $46,000 per instance. So it doesn’t take much math to figure out how much it would take to, you know, put a dealership out of business. That’s a pretty big, hefty fine. And, yeah, so I think they’re really right now with the current landscape of the government. They are very consumer protective. And I think the concept is correct, right. We need to protect consumer data inside of dealerships. And there needs to be some standard policies and some standard base configurations in place to ensure that the consumer information is being safeguarded. n
n And so I think the concept is correct. I’m not sure I agree with the penalties. Or, you know, the enforceability. They want dealers to have these things in place by the end of the year. But yeah, it’s very impactful. And it’s not an easy lift to get where the government wants you to be either. So yeah, it’s, it’s pretty significant.n