What’s the Topic of Conversation in the NIADA Boardroom
Transcript
Bob :nSo we’re talking about the Federal Trade Commission’s safeguards rule that goes into effect on December the ninth. And those are going to, you know, every dealershipu2019s needs are affected by this. And dealerships that have more than 4000. Customer identifying records, that’s not sales, it’s anything Customer Identification related, have more hoops to jump through. And the really scary part of this, this rule is it’s not so much going to be enforced by the government. It’s going to be enforced by trial lawyers, should there be a breach? And if you didn’t have your plan, and you didn’t follow it, you could be facing a class action lawsuit. So yeah, it’s very scary. I know that we have materials. Nada has materials, I’m sure NIADA has materials to help our dealers prepare for this. So we’re talking a lot about that. We’re talking about the tax bill that just passed the Senate and is now pending in the house and what that means, and what does 80,000 more IRS Auditors mean, for s corps? n
nSean :nYeah, that’s an interesting thing that could lead to some serious diversions or distractions from business focus, which is really where entrepreneurs need to be focused right now, not on protecting, I mean, protecting your assets is key. But you know, the distractions that come with an audit or something good. Could you say on the safeguard? And I know, when do dealers need to have their plan by on the safeguard? December the ninth? Okay, gotcha. And what are some of the biggest risks that they’re going to face? If they don’t have a plan? What, what are they?n
nBob :nThe rulebook wires, and this rule has been in place for financial institutions, it is now expanded to anyone who collects. identifying information about consumers are dealers, they have to make sure that they have to have a qualified individual. They have to do training, they have to have response plans, they’re responsible for their vendors keeping information safe. So I was just at a meeting where somebody said, Well, my DNS provider will keep it all safe. Now you’re responsible for your deep DNS provider. So you better make sure that they are keeping it safe. And it’s all about protecting the consumer. So you know it, it’s going to be a process for us all. And it’s going to be somewhat challenging to get through that process. But the goal is good. We don’t like more time, because I don’t think anybody paid attention to it being you know, but December 9 is coming up on us quickly. And sounds like you’re gonna get shut down. But if you don’t have your plan, or you’re not developing your plan, and something happens, you could face a serious challenge.n
nSean :nYeah, I think a lot of the software companies out there need to be very leery of that and adapt accordingly. I remember, in my tenure with Drive centric CRM, the first conference we went to was a driving sales event, I believe. And then there were a lot of Canadian dealers there. And it was interesting when they started bringing up the Castle laws they have up north, and how it sounds similar to this one, where it’s very, very strict around who you can call after how much time and your database. And so it sounds like this is really critical for making sureu2026n
nBob :nThis is more about protecting data. So if you collect a driver’s license, because someone’s going to go on a test drive, how are you protecting that driver’s license so that it isn’t going to be stolen or or credit information or any, any identifying information of a consumer has to be protected? And we know that there are no good NICs out there trying to hack everybody to get this information. So again, the goal is good. But it’s one of those. There’s gonna be a lot of pain between now and in December the 9th.nn
nSean :nYeah, that’s an interesting thing that could lead to some serious diversions or distractions from business focus, which is really where entrepreneurs need to be focused right now, not on protecting, I mean, protecting your assets is key. But you know, the distractions that come with an audit or something good. Could you say on the safeguard? And I know, when do dealers need to have their plan by on the safeguard? December the ninth? Okay, gotcha. And what are some of the biggest risks that they’re going to face? If they don’t have a plan? What, what are they?n
nBob :nThe rulebook wires, and this rule has been in place for financial institutions, it is now expanded to anyone who collects. identifying information about consumers are dealers, they have to make sure that they have to have a qualified individual. They have to do training, they have to have response plans, they’re responsible for their vendors keeping information safe. So I was just at a meeting where somebody said, Well, my DNS provider will keep it all safe. Now you’re responsible for your deep DNS provider. So you better make sure that they are keeping it safe. And it’s all about protecting the consumer. So you know it, it’s going to be a process for us all. And it’s going to be somewhat challenging to get through that process. But the goal is good. We don’t like more time, because I don’t think anybody paid attention to it being you know, but December 9 is coming up on us quickly. And sounds like you’re gonna get shut down. But if you don’t have your plan, or you’re not developing your plan, and something happens, you could face a serious challenge.n
nSean :nYeah, I think a lot of the software companies out there need to be very leery of that and adapt accordingly. I remember, in my tenure with Drive centric CRM, the first conference we went to was a driving sales event, I believe. And then there were a lot of Canadian dealers there. And it was interesting when they started bringing up the Castle laws they have up north, and how it sounds similar to this one, where it’s very, very strict around who you can call after how much time and your database. And so it sounds like this is really critical for making sureu2026n
nBob :nThis is more about protecting data. So if you collect a driver’s license, because someone’s going to go on a test drive, how are you protecting that driver’s license so that it isn’t going to be stolen or or credit information or any, any identifying information of a consumer has to be protected? And we know that there are no good NICs out there trying to hack everybody to get this information. So again, the goal is good. But it’s one of those. There’s gonna be a lot of pain between now and in December the 9th.nn