Issue 4 2024 Official Publication of the New Jersey Coalition of Automotive Retailers NJ CAR INTRODUCES TECHNICIAN ADVANCEMENT PROGRAM (TAP) The Advanced Clean Truck Rule Is BAD for New Jersey NJ CAR Continues Fighting for a Two-Year Delay Data Privacy and Cybersecurity Update
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©2025 New Jersey Coalition of Automotive Retailers (NJ CAR) | The newsLINK Group LLC. All rights reserved. New Jersey Auto Retailer is published four times per year by The newsLINK Group LLC for NJ CAR and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of NJ CAR, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. New Jersey Auto Retailer is a collective work, and as such, some articles are submitted by authors who are independent of NJ CAR. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. table of CONTENTS NJ CAR BOARD OF TRUSTEES BY REGION NORTHERN REGION I (Bergen, Essex, Hudson, Passaic, Sussex) Mark Abaid (Alt.) Joseph Agresta, Jr. (Alt.) Timothy Allocca Jeffrey Brown John Fette Matthew Haiken (Alt.) William Kundert, Jr. Brian Lam Renee P. McGuire Richard Selman Todd Van Duren NORTHERN REGION II (Hunterdon, Morris, Somerset, Union, Warren) Greg Ciocca, Jr. David Ferraez Chris Gilbert (Alt.) John Johnson, Jr. Sean Lyons Trent Miller (Alt.) Mark Montenero Chris Preziosi, Jr. (Alt.) Michael Salerno Stephen Tilton CENTRAL REGION (Middlesex, Monmouth, Ocean) Dan Chuhinko Robert Ciasulli Lisa Ocasio Devivo Kevin DiPiano (Alt.) Garry Foltz Elizabeth Giglio Adam Kraushaar Veronica Maoli (Alt.) Anton Semprivivo Joseph Wajda (Alt.) SOUTHERN REGION (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, Salem) Russell Abate Allen Eastlack (Alt.) Jason Elkins Jeremy Fisher Thomas Hessert, III Steven Kindle Judith Krupnick (Alt.) Stacey Lilliston James Magee (Alt.) Marcy Maguire Robert D. McCormick Ronald E. Baus, Jr..........................................................................Chairman Andy Shapiro........................................................................Vice Chairman Ed Barlow, III................................................................................Secretary Michael P. DeSilva......................................................................... Treasurer Jordan Wright.......................... Regional Vice President (Northern Region I) Michael DiFeo........................Regional Vice President (Northern Region II) Richard Malouf, Jr.........................Regional Vice President (Central Region) David Kull.................................Regional Vice President (Southern Region) Eric Nielsen.......................................................................Budget Chairman Michael McGuire..................................NJ CAR Insurance Co. Ltd. Chairman William L. Strauss, III................................. NJ CAR Services, Inc. President Richard DeSilva, Jr.........................................NADA Director for New Jersey Frank M. Pezzolla...............................................Truck Committee Chairman Charles S. Miller.............................................................CAR-PAC President Thomas DeFelice, lll........................................................NextGen Chairman Laura Perrotta...............................................................................President PRESIDENT’S MESSAGE 6 Together We Will Succeed BY LAURA PERROTTA CHAIRMAN’S MESSAGE 8 A New Era Begins at NJ CAR BY RONALD E. BAUS, JR. NADA DIRECTOR’S MESSAGE 10 Major Issues Addressed by NADA BY RICK DeSILVA, JR. 12 Charge Up+ Program Offers Some EV Buyers an Additional $2,000 Incentive on Eligible Vehicles 14 The Advanced Clean Truck Rule Is BAD for New Jersey NJ CAR Continues Fighting for a Two-Year Delay 16 NJ CAR Introduces Technician Advancement Program (TAP) BY JOHANNA STUBENHOFER 18 Data Privacy and Cybersecurity Update BY MARY T. COSTIGAN, ESQ. 22 Thank You to Those Who Contributed to NADA PAC 24 NJ CAR Recognizes Dealerships That Have Contributed to CAR-PAC 28 NJ CAR Recognizes Outstanding Dealerships 32 New Car Dealers Economic Impact 34 Every Dealership Should Be a Member of NJ CARPOOL EDITOR: BRIAN HUGHES PUBLISHED BY THE NEWSLINK GROUP LLC (855) 747-4003 NJ CAR Executive Committee and Board of Trustees 2024 4 NEW JERSEY auto retailer
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PRESIDENT’S MESSAGE It’s only fitting that I use my first New Jersey Auto Retailer column to introduce myself. First, I want everyone to know how honored I am to have the opportunity to lead this incredible organization. I have had the pleasure of working with many outstanding New Jersey dealers over the years and have the utmost respect for the Coalition and its fierce advocacy and innovative member service programs. I have known Jim Appleton for over a decade, and there has been no better champion for the dealers. I am thrilled to get to take this well‑oiled machine and bring it to the next level, tapping into my experience and my passion for your business and for what you do for your communities. As I learn the nuances of the Coalition, the staff, the dealers, and the products and services we provide, I am confident we will find new ways to help NJ CAR continue delivering the five-star level of support our members have come to expect. The NJ CAR team is tremendous, and they work tirelessly on your behalf. A LITTLE BACKGROUND I have been working in the association world for more than 20 years. Most recently, I was President of the American Truck Dealers, a division of NADA that represents more than 3,200 franchised medium- and heavy-truck dealers. Previously, I was President and CEO of the American Highway Users Alliance, and prior to that, I was the Senior Director of Legislative Affairs for NADA. I am originally from Elmira, New York, and have a bachelor’s degree in political science from Salisbury State University in Maryland. I had lived in the Washington, D.C., metro area since 2001, but moved to Titusville, New Jersey, last November with my husband, Steve, and our two young children, Gia (10) and Joey (7). MY PLAN FOR 2025 AND BEYOND Over the course of my first few months, I have been traveling around the state to visit your stores. I’ve also picked up the phone or fired up my webcam more times than I can count. But this outreach is important because I want to engage with our dealer members. I will continue getting to know as many of you as possible throughout 2025, but please don’t hesitate to contact me if there is anything you want to address. My first priority will always be the needs of the NJ CAR’s members, so my door is always open. In addition to dealer meet and greets, the Coalition’s dedicated team is helping me quickly get up to speed on the specific issues impacting New Jersey dealers. I’m also getting the lay of the political landscape through meetings with legislators, regulatory contacts, and industry stakeholders. Again, I am truly honored to lead NJ CAR, and I know by working together, we will succeed. LAURA PERROTTA, PRESIDENT, NJ CAR Together We Will Succeed 6 NEW JERSEY auto retailer
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CHAIRMAN’S MESSAGE NJ CAR was founded in 1918, and in the last 107 years, it has continued to grow and evolve lock-step with the auto retailing industry it represents. With the retirement of Jim Appleton in November, after 27 years at the Coalition’s helm, we were incredibly lucky to recruit Laura Perrotta to join the organization as its new President. Jim has left his mark on NJ CAR and our industry with his tireless dedication to serving New Jersey’s franchised dealers. For nearly three decades, he promoted issues and policies that would benefit us and fought hard against proposals that would harm dealers or consumers. Laura has some big shoes to fill, but she has hit the ground running and is already taking up that mantle for dealers. She comes to NJ CAR with 21 years of association experience and has built a very impressive resume. Prior to joining NJ CAR, Laura served as President of the American Truck Dealers (ATD), a division of the National Automobile Dealers Association (NADA) that represents more than 3,200 franchised medium- and heavy-duty truck dealers nationwide holding nearly 5,600 separate domestic and import franchises. Before ATD, Laura served as President and CEO of the American Highway Users Alliance, an organization focused on promoting safe highways and freedom of mobility. Laura was also the Senior Director of Legislative Affairs for the National Automobile Dealers Association (NADA), where she handled financial services, transportation, and truck and safety issues. As NADA President Mike Stanton said in NJ CAR’s press release announcing her arrival, “Laura Perrotta has done an outstanding job for medium- and heavy-duty dealers across the country, and she will be a tremendous asset to the dealers in New Jersey as President of NJ CAR.” I have been working closely with Laura for several months already and I couldn’t agree with Mike’s assessment more. The NJ CAR Executive Search Committee found a highly qualified executive that will help NJ CAR continue its success and build on its reputation as one of New Jersey’s (and the country’s) most well-respected business advocacy organizations. But she won’t be doing it alone. Laura is fortunate to be surrounded and supported by an incredibly hardworking and dedicated staff with decades of experience at NJ CAR and hundreds of years of combined professional experience. She will empower everyone to make the most of their professional development, which will benefit them individually, as well as the Coalition and the dealers it represents. If you haven’t already met Laura, you will soon. She has been barnstorming the state and jumping on the phone to engage with as many dealers as possible, and she will continue to do so throughout 2025. Please join me in welcoming Laura to NJ CAR and wishing her every success as she fights on behalf of New Jersey’s neighborhood new car and truck dealers. RONALD E. BAUS, JR., CHAIRMAN, NJ CAR A New Era Begins at NJ CAR 8 NEW JERSEY auto retailer
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NADA DIRECTOR’S MESSAGE RICK DeSILVA, JR., DIRECTOR, NADA The following is the latest on some of the major issues being addressed by NADA. Please don’t hesitate to contact me at rdesilva@libertycarsnj.com if you have any questions. U.S. COURT RULES IN FAVOR OF NADA IN FTC VEHICLE SHOPPING RULE CHALLENGE The U.S. Court of Appeals for the Fifth Circuit, in a 2-1 vote, recently granted a petition filed by NADA and the Texas Automobile Dealers Association (TADA) to vacate the FTC Vehicle Shopping Rule (CARS Rule). The decision is a victory for the rule of law and a great outcome for consumers. NADA has long emphasized that the rushed, poorly researched, and unnecessary rule would have added massive amounts of time, complexity, paperwork, and cost to the car-buying experience for virtually every customer. NADA ENGAGES WITH TRUMP ADMINISTRATION AND REPUBLICAN-LED CONGRESS NADA has been deeply engaged with the new Administration and the new Congress to work on several top dealer priorities. NADA has wasted no time in arranging meetings at key agencies (EPA, DOT, DOL, FTC, CFPB, Treasury, etc.) as they work to implement President Trump’s agenda. NADA has also met with the new Congressional leadership, key committee chairs, and a number of new members of Congress to convey the industry’s legislative priorities. VOLKSWAGEN/SCOUT DIRECT SALES PLAN IS BEING CHALLENGED Volkswagen AG’s attempt to sell Scout vehicles directly to consumers and compete with its U.S. dealer partners is outrageous and misguided. NADA has made it very clear that this decision will be challenged in statehouses and courthouses across the country. NADA has been working with ATAEs and associations across the country to determine the best paths forward to protect the franchise system while also standing behind Volkswagen and Audi dealers. In December, NADA completed a state-by-state legislative analysis of state franchise laws and provided ATAEs with a robust set of talking points to use in their engagement with local officials. NADA has communicated very clearly on numerous occasions to Volkswagen and Scout leadership that the franchise system is the best and most efficient way to deliver the customer experience that today’s marketplace demands. CALIFORNIA AIR RESOURCES BOARD (CARB) WAIVER IN LIMBO The start of the 119th Congress and the beginning of President Trump’s term present several opportunities to advance the elimination of the Biden Administration EPA’s recent grant of a waiver allowing California to implement its Advanced Clean Cars II (ACC2) program. ACC2 requires new vehicle sales by vehicle manufacturers to be 35% zero emissions vehicles (ZEVs) by 2026 and increases to 100% ZEVs in 2035. Eleven states (including New Jersey) have adopted California’s strict mandate. NADA has engaged with the Trump Administration to express strong support for its intention to direct EPA to initiate a rulemaking to revoke the CARB waiver and has also urged congressional leaders to move quickly on legislation to disapprove the waiver. EPA’S DE FACTO EV MANDATE DOES NOT MATCH CONSUMER DEMAND The EPA’s de facto EV mandate is far too aggressive and far ahead of consumer demand, which is why NADA continues to urge the government to track actual EV sales versus projections and make the necessary adjustments to its requirements to reflect actual consumer demand. President Trump has already worked to freeze or initiate a process to reverse many Biden EV regulations. A top priority for ATD/NADA is also reversing the zero-emission vehicle (ZEV) mandate for heavy-duty trucks. RECENT FTC ENFORCEMENT ACTIONS AGAINST DEALERS SERVE AS A REMINDER In December, the Federal Trade Commission (FTC) announced two enforcement actions against dealerships. The allegations included violations of various federal and state laws regarding advertising; the selling and financing of vehicles; and voluntary protection products. One of the proposed settlements requires (among other provisions) that the dealership pay $20 million. Additionally, the FTC continues holding dealer leadership, as well as the dealership entities themselves, responsible for alleged unlawful behavior. These enforcement actions reaffirm the need for robust training, oversight, and compliance in all aspects of dealership advertising, sales, and finance operations. NADA is presenting a webinar, FTC Enforcement and Your Dealership, on February 20 to educate dealers about these enforcement actions and how to protect themselves. Major Issues Addressed by NADA 10 NEW JERSEY auto retailer
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The Charge Up+ income-based, electric vehicle (EV) incentive launched in November 2024. As of the date of publication, the Board of Public Utilities (BPU) has approved more than 2,150 Charge Up+ applications from potential buyers and nearly 1,200 have been redeemed (55%), with the other 974 not yet redeemed. Dealers (and consumers) may have questions about the new incentives, including eligibility and the application process. The following are some details about the new program. When speaking to a customer about an EV eligible for the base $2,000 Charge Up New Jersey incentive, dealer personnel should make the potential buyer aware of the potential additional $2,000 Charge Up+ incentive. The customer will need to apply through the BPU to determine whether or not they are eligible, based on their income. If they are, they will receive a Prequalification ID. They can then return to the dealership to order, purchase, or lease an eligible vehicle, and will receive the additional $2,000 Charge Up+ incentive at the point‑of‑purchase. Consumers should note that applications are processed by the BPU on a first-come, first-served basis, and may take up to 10 business days. Charge Up+ Program Offers Some EV Buyers an Additional $2,000 Incentive on Eligible Vehicles 12 NEW JERSEY auto retailer
ArentFox Schiff’s Automotive Group drives innovative strategies forward. Our cutting-edge, national practice advises automotive leaders as the industry faces a dizzying array of competitive and regulatory hurdles. Smart in Automotive Smart In Your World afslaw.com Key Contact: Michael P. McMahan Partner, NY 212.484.3982 Michael.McMahan@afslaw.com When the customer arrives at the dealership with a Prequalification ID, the dealer representative will do the following: 1. In the Charge Up New Jersey dealership dashboard, start a new application and select “Prequalification ID” instead of the driver’s license. 2. Enter the Prequalification ID that the customer provided. If valid, you will get a confirmation message that the ID is eligible. Note: Dealerships must verify the Prequalification ID before the purchase or lease is executed. Dealerships are responsible for determining the correct incentive amount and are prohibited from “clawing back” the incentive post‑purchase due to a miscalculation. 3. After verifying the Prequalification ID, start the application and accept the Terms and Conditions for the application to be “claimed” by the dealership. The dealer may save the application progress in the submission portal and resume the purchase or lease execution, applying the full $4,000 to the customer’s purchase or lease agreement. 4. In the dealership dashboard, the application will appear twice, once for the standard $2,000 Charge Up New Jersey incentive, and once for the increased (additional) $2,000 Charge Up+ incentive. Note: The application number (NJ-XXXXXXX) for the prequalified customer will remain the same throughout the entire prequalification process. 5. Continue through the application in the standard Charge Up New Jersey submission process, then upload the following documentation to complete and submit the application: a. Purchase/Lease Agreement (with the full $4,000 incentive applied) b. Signed Terms and Conditions (with the Prequalification ID and $4,000 incentive listed) c. Vehicle Registration If you have any additional questions, you can access the Charge Up New Jersey program FAQs by scanning the QR code. https://chargeup.njcleanenergy.com/faqs You can contact the program administrator at chargeupnj@energycenter.org or (877) 426-2474. You can also contact NJ CAR Director of Communications, Brian Hughes (bhughes@njcar.org), or NJ CAR Director of Government Affairs, Magdalena Padilla (mpadilla@njcar.org), and they can expedite your questions with their contacts at the program administrator. 13 NEW JERSEY auto retailer
The Advanced Clean Truck Rule Is BAD for New Jersey NJ CAR Continues Fighting for a Two-Year Delay NJ CAR President Laura Perrotta, as well as Coalition members Frank Pezzolla (Frank’s Truck Center), Douglas Hoover (Hoover Truck & Bus Centers), Romolo Gabrielli (Gabrielli Kenworth of New Jersey), Joseph Cambria (Cambria Truck Center), Spencer Campbell (Campbell Supply Company), and Jack Licata (North Jersey Truck Center) testified in front of the Assembly Transportation Committee in December in support of Bill A4967: Legislation that would delay implementation of the Advanced Clean Truck (ACT) Rule for two years. Laura, Frank, Douglas, Romolo, Joseph, Spencer, and Jack focused on the economic challenges, operational limitations, and other negative impacts implementing ACT will have on New Jersey auto retailers, their customers, and the entire Garden State economy. The legislation was voted out of committee unanimously, but it still has a long way to go before it becomes law. The Assembly bill continues to await a full Assembly vote, while the companion Senate bill (S3817), sponsored by Senators Patrick Diegnan and Vin Gopal, has been referenced to the Senate Environmental Committee hearing but has not yet been scheduled for a hearing. BACKGROUND ON ACT The ACT Rule went into effect on January 1, 2025, and mandates the sale of an increasing number of zero-emission Class 2B through Class 8 trucks. Keep in mind that the ACT Rule doesn’t just impact the big 18-wheelers. Several popular pick-up models, such as the Chevrolet Silverado 2500, the Dodge Ram 2500, and the Ford F-250, are considered Class 2B vehicles (GVW of 8,501‑10,000 pounds). This timeline is unrealistic and will be devastating for New Jersey dealers and the buyers who rely on Class 2B through Class 8 trucks if the Rule’s implementation is allowed to proceed. The state has a different (and wholly flawed) view of the impact ACT will have on dealers and truck purchasers. According to a recent NJDEP memo, “… the (ACT) rule does not apply to New Jersey’s truck dealers, purchasers, or operators,” and “… manufacturers are well ahead of their 2024 EV sales obligations.” The ACT mandates are so stringent that they have already forced several manufacturers to ration clean diesel trucks they allocate to their New Jersey franchisees, resulting in a dwindling inventory with severely limited options for many truck buyers. All this will do is cause many businesses to hold on to their old, less efficient trucks instead of upgrading them to a new, cleaner diesel truck that meets their needs. New Jersey is simply not ready for the ACT Rule for several reasons. • Lack of Infrastructure: New Jersey lacks the necessary commercial charging stations for medium and heavy-duty electric vehicles. There are currently NO public heavy-duty chargers available in New Jersey. • Economic Challenges: Electric trucks are prohibitively expensive, averaging $500,000 compared to $180,000-$200,000 for diesel trucks. Manufacturers have not ramped up production of electric trucks (particularly specialized models), with delivery times going as long as 18 months. • Operational Limitations: Electric trucks average 150 miles per charge, far below the 1,500-mile range of diesel trucks and charging can take up to 10 hours, compared to 15 minutes for refueling diesel. Additionally, the battery weight adds as much as 8,000 pounds to the vehicle’s weight, which reduces the cargo that can be carried, resulting in MORE trucks on the road. New Jersey’s medium and heavy-duty truck dealers want to sell what their customers want to buy. However, there is currently not nearly enough demand for electric trucks to meet the ACT mandates, nor is New Jersey’s infrastructure ready to support these vehicles. NJ CAR continues to fight to pass A4967 and will soon launch both a grassroots campaign to encourage legislators to support the delay, as well as a public relations campaign to inform the public about how the ACT Rule will negatively impact New Jersey truck buyers and the many industries that rely upon trucks to provide a wide variety of products and services for Garden State consumers. 14 NEW JERSEY auto retailer
NJ CAR Introduces Technician Advancement Program (TAP) BY JOHANNA STUBENHOFER, COMMUNICATIONS ASSOCIATE, NJ CAR In an effort to address the severe shortage of skilled automotive technicians, NJ CAR is in the midst of its first Technician Advancement Program (TAP) training boot camp. This 18-week program is tailored to the needs of the dealership and outshines other traditional training options in several ways. Community college or technical schools are expensive, require large time commitments, and typically contain little opportunity for students to get worthwhile hands-on experience. NJ CAR TAP intends to address all these shortcomings by creating a sustainable program to train individuals who are interested in pursuing a rewarding career as an auto technician. The program is hosted at a local dealership (the first was held at Dayton Toyota), allowing participants to learn and apply their skills through a combination of classroom instruction and hands-on application in the dealership’s service department. BOOT CAMP’S DEVELOPMENT & BOTTOM LINE TAP was developed by NJ CAR in partnership with dealership fixed operation personnel. It is taught by dealership master technicians to promote efficiency, inspiring confidence in the participants’ ability to effectively perform basic repairs on vehicles in the service lane. Upon completion, graduating participants will know how to perform entrylevel tasks including oil changes, mounting and dismounting tires, correcting alignments, and replacing brakes. TAP is also providing tool assistance (at a discounted price for students) to help create as many job-ready candidates as possible for dealers by the end of each program cycle. NJ CAR TAP’S TRANSFORMATIVE APPROACH TO AUTOMOTIVE TRAINING In this accelerated learning program, students will be able to quickly and efficiently learn the skills they need to become an entry-level technician and enter the workforce. Taking TAP training in a real dealership setting gives students a more practical and realistic experience in understanding what it’s like to work on vehicles at the dealership. By hosting one of the NJ CAR TAP boot camps, your dealership will be able to identify and develop talented candidates that will ultimately help grow your dealership’s success. Dealerships that invest in these students are also investing in the community’s future by providing them with the opportunity to gain valuable skills and secure rewarding careers in automotive retail. BECOMING A DEALERSHIP HOST FOR TAP Help the NJ CAR TAP program grow and expand by becoming a dealership host for a future TAP boot camp. As a host, you will join a group of dealers focused on empowering talented jobseekers in your community, strengthening your workforce, and continuing to grow your dealership’s success. For more information on NJ CAR TAP, please reach out to Brandon Jurakhan, Manager of Workforce Development, at (609) 883-5056, ext. 318 or bjurakhan@njcar.org. 16 NEW JERSEY auto retailer
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Data Privacy and Cybersecurity Update BY MARY T. COSTIGAN, ESQ., PRINCIPAL, AND JASON GAVEJIAN, ESQ., PRINCIPAL, JACKSON LEWIS P.C. Data protection and cybersecurity are a growing concern for companies — particularly dealerships. The following is a summary of the three data protection laws that went into effect or were enacted in 2024. THE NJ DATA PROTECTION ACT The New Jersey Data Protection Act (NJ DPA) is a comprehensive consumer data protection law that went into effect on January 15, 2025. The Act applies to organizations that conduct business in New Jersey OR produce products or provide services targeted to New Jersey residents; AND during a calendar year: • Control or process the personal data of at least 100,000 consumers (excluding personal data controlled or processed solely for the purpose of completing a payment transaction), or • Control or process the personal data of at least 25,000 consumers and derive revenue or receive a discount on the price of any goods or services from the sale of personal data. The Act excludes financial institutions, data, or affiliates of a financial institution that are subject to the Gramm‑Leach‑Bliley Act (GLBA), which may include auto dealerships that offer consumers financial products or services involving credit, loans, and leases. Entities that do not offer financial services and are not subject to GLBA may be subject to the NJ DPA. The DPA does not apply to employment-related personal data or data collected in the business‑to‑business context. Obligations imposed by the Act on covered businesses include: • Providing a privacy notice to consumers. • Responding to consumer requests to access, correct, or delete the personal data collected by the business, or requests to opt out of the business selling that data to a third party or using it to serve online targeted advertising. • Implementing reasonable safeguards to protect consumer data. • Contractually obligating service providers with access to the business’ consumer data to implement reasonable safeguards to protect it. 56:12-18.1 (NJ BILL A4723) Effective January 2024, motor vehicle dealers must offer to delete a consumer’s personal data from a vehicle upon taking possession of the vehicle for resale or lease. The connected nature of vehicles means that certain information systems, (such as navigation history, paired phone, garage door codes, etc.), collect and store consumer personal data. A motor vehicle dealer who violates this law may be subject to a civil penalty of $500 for a first offense and $1,000 for any subsequent offense. AMENDMENT TO THE FTC SAFEGUARDS RULE Effective June 2024, motor vehicle dealerships that are subject to GLBA must notify the Federal Trade Commission within 30 days of discovering a security breach that impacts the information of 500 or more consumers. This reporting obligation is in addition to any state data breach notification obligations that may apply. The amendment applies to incidents directly impacting a dealership as well as those impacting a vendor or service provider who has access to or processes information on behalf of the dealership. The breach notification rule supplements the Safeguards Rule requirement that dealerships maintain a comprehensive written information security program to protect customer information and an incident response plan, monitor service providers who have access to or process information on behalf of the dealership, and conduct employee security awareness training. Failure to comply with the Safeguards Rule can result in substantial financial penalties. Mary T. Costigan and Jason Gavejian are Principals with Jackson Lewis P.C. and members of the firm’s national Privacy, Data and Cybersecurity practice group. Mary and Jason work out of the firm’s Berkeley Heights office and can be reached via email at mary.costigan@jacksonlewis.com and jason.gavejian@jacksonlewis.com. 18 NEW JERSEY auto retailer
FAQ: UNDERSTANDING RANSOMWARE ATTACKS (AND HOW TO RESPOND) As dealers are a frequent target of cyberattacks, particularly ransomware attacks, the following are some frequently asked questions to help dealers understand these attacks and how best to respond. 1. What types of organizations do ransomware groups target? It is a popular misconception that ransomware groups attack only large or high-profile targets, or businesses in specific industries. Unfortunately, any organization that has a computer connected to the internet is at risk regardless of their size, industry, or location. Given the vast amounts of personal information that dealerships have access to, they are a popular target for these attacks. 2. What is a ransomware attack? During a ransomware attack, “threat actors” gain access to a device, conduct reconnaissance to identify sensitive information, and deploy malicious code to encrypt data or systems to render them unusable. They demand a ransom in exchange for the decryption key (to allow you to access your data) and/or to prevent them from leaking your stolen data on the Internet. 3. How do threat actors gain access to an organization’s systems? While there are many ways threat actors can gain access, frequently it is through a phishing email or by exploiting the organization’s remote desk protocol (RDP). 4. What should dealers do in the event of a ransomware attack? The initial steps for responding to a ransomware attack can be remembered by the acronym CPR. The first critical step is Containing the incident — in other words, stopping the attack from spreading. The second and third steps run on parallel tracks. These involve Preserving evidence of the attack while Restoring the impacted systems and data so the organization can continue business operations. This evidence will be critical for determining what happened and whether the incident triggers a legal reporting obligation for the organization. 5. Is an organization immune to a ransomware attack if it has backup data? Not necessarily. The backup needs to be segregated so that threat actors can’t wipe or encrypt the backup data. Even if the organization has viable backup data, it can take days or weeks to restore from backup, so the likelihood of business disruption is still high. Additionally, while a backup may help the organization get back up and running, the threat actor may still seek a ransom in order to prevent them from leaking any stolen data. 6. Do dealers need to conduct a forensic investigation of the incident? Conducting a forensic investigation is generally necessary for determining what happened as well as whether personally identifiable information was impacted. If the organization has cyber coverage, insurance carriers typically require conducting a forensic investigation using an expert third-party forensic investigation firm under the direction of external counsel to protect the investigation under attorney-client privilege. 7. Is it illegal to pay a ransom? No, as long as the ransom group is not on the U.S. Department of the Treasury’s Office of Foreign Assets Control’s (OFAC) list. The OFAC list consists of sanctioned individuals, entities, 19 NEW JERSEY auto retailer
foreign jurisdictions and regimes with whom U.S. citizens and companies are prohibited from doing business. However, the FBI recommends not paying a ransom. 8. Can dealers negotiate the ransom on their own? Ransom groups are typically sophisticated international criminals, and we recommend engaging a professional negotiator. These professionals have studied ransom groups and developed strategies for the negotiation process based on analysis of available information from prior group activities. 9. How is a ransom paid? Ransom payments are facilitated by professional vendors who typically set up a Bitcoin (or similar cryptocurrency) wallet for the payment once the OFAC check has cleared. 10. If the ransom is paid, is the attack over? No. The organization will need to ensure the threat actors are no longer in their systems. In addition, it may take time to restore impacted systems and data. If the organization pays for a decryption key, there is a risk the key may not work, and, in some cases, the encryption activity may have corrupted the data so it cannot be recovered. Additionally, the organization may need to monitor the dark web to determine if the threat actor has released any of the stolen data. 11. What steps can dealers take to minimize the risk of being the victim of an attack? There are a number of steps, but the most important include: • Regularly updating the organization’s software and operating systems with the latest patches. • Removing outdated applications and operating systems. According to CISA, these are the target of most attacks since older systems typically do not have updated security controls. • Providing employees with regular security awareness training to help minimize the risk of opening attachments or clicking on links in unsolicited or suspicious emails. • Routinely backing up sensitive data and maintaining it in a segregated offline form. • Reviewing and updating the organization’s written information security program (WISP) and monitoring compliance. A WISP outlines how the organization will protect certain sensitive information. This is particularly important if the organization is subject to the FTC Safeguards Rule which requires implementing an appropriate written information security program. • Ensuring the organization’s IT staff has the training and tools needed to keep systems updated and the resources to stay updated on the threat landscape. 12. What steps can dealers take to prepare for responding to a ransomware attack? There are several key steps to consider taking: • Understanding the terms of the organization’s cyber coverage and who to contact in the event of an attack. • Reviewing and updating the organization’s written Incident Response Plan (IRP). This is not a technical plan but rather an administrative plan that lays out who is on the incident response team, their role and responsibilities, the steps to take during an incident, what contractual and legal reporting obligations may apply (e.g., the FTC’s updated Safeguards Rule and breach reporting obligations), how you will handle internal and external communications, and related information. • Practicing the IRP. • Ensuring the organization’s IT team understands how to preserve evidence of the attack. • Ensuring the organization’s data is regularly backed up, offline, and viable. • Reviewing and updating the organization’s business continuity plan to prepare for potential disruption to business operations (invoicing, payment processing, etc.). 13. What type of reporting obligations for the organization may be triggered by the attack? This will depend on the organization and the nature of the data impacted. For example, state data breach notification laws may apply depending on the type of personally identifiable information impacted. Notably, the applicable state law(s) will be determined based on the state of residence of the impacted individuals (which may be multiple states and thus multiple laws in scope). The amended FTC Safeguards Rule requires notifying the FTC within 30 days of discovering certain types of data breaches. Organizations that self-fund their employee health or wellness plans may be subject to a notification and reporting obligation under HIPAA if protected health information is impacted. In addition, the organization may have contractual obligations to notify a business partner, bank, or other third party if it experiences a security incident. Ransomware attacks can cause a wide range of harm to any organization — business interruption, economic loss, reputational harm, investigation and legal costs, and loss of sensitive or proprietary information. Staying informed on the evolving risk landscape, data mapping to understand where the organization’s sensitive data resides, conducting regular system risk assessments, and practicing the Incident Response Plan are basic steps to help strengthen the organization’s resilience and ability to respond in the event of an attack. For additional information and resources on ransomware attacks, visit the websites for NJ Cybersecurity & Communications Integration Cell, CISA, and FBI. 20 NEW JERSEY auto retailer
THANK YOU to Those Who Contributed to NADA PAC NADA PAC helps to elect qualified individuals to Congress who understand the needs of new car and truck dealers. NADA PAC is consistently credited as being one of the nation’s top trade association political action committees in terms of both total fundraising and contributions to federal candidates. NADA PAC supports candidates for Congress on a bipartisan basis from the recommendations of the NADA PAC dealer leadership for each state. The following individuals from New Jersey have contributed a total of $48,000 to NADA PAC in 2024: Ronald Baus Emily Campbell Spencer Campbell Robert Ciasulli Tom DeFelice, III Michael DeSilva Rick DeSilva, Sr. Rick DeSilva, Jr. Jason Elkins John Fette Garry Foltz Hal Heidt David Kull Paul Larson Shelly Locascio James McCormick Robert McCormick Michael McGuire Charles Miller Paul Muller Eric Nielsen Ed Rossi Ryan Schmidt Drew Sciaulino Andrew Shapiro Robert Sickel Peter Spina Michael Trebino Jeffrey Wall David Wintrode 22 NEW JERSEY auto retailer
© 2024 Truist Financial Corporation, TRUIST, Truist purple and the Truist logo are service marks of Truist Financial Corporation. All rights reserved. Truist Securities is the trade name for the corporate and investment banking services of Truist Financial Corporation and its subsidiaries. Securities and strategic advisory services are provided by Truist Securities, Inc., member FINRA and SIPC. | Lending, financial risk management, and treasury and payment solutions are offered by Truist Bank. | Deposit products are offered by Truist Bank, Member FDIC. We’re more than a financial partner. We’re an invested one. True relationships matter. We don’t take this lightly. The best are built on a deep understanding of your short- and long-term goals and always backed by thoughtful, strategic advice in support of your vision. With full-service financial solutions and a deep bench of industry expertise, we’ll build a team around your organization to focus on your success. So, let’s drive further—together. To learn more, visit us at Truist.com/DealerServices.
NJ CAR Recognizes Dealerships That Have Contributed to CAR-PAC NJ CAR appreciates the support of the 382 dealers who contributed to CAR-PAC, the Coalition’s political action committee, between January 1, 2024, and December 31, 2024. CAR-PAC needs the contributions of ALL dealers to ensure it has the necessary financial resources to support candidates (on both sides of the aisle) who support the franchised retail automotive industry in New Jersey and ensure the dealers’ voice is heard in Trenton on a wide variety of important public policy issues. CAR-PAC has been (and will continue to be) very active in supporting the candidates who support our industry. The New Jersey Election Law Enforcement Commission (ELEC) rules allow contributions to a political action committee of up to $15,200 per business or jointly-controlled business (up from $7,200 in 2024). Don’t forget, contributions can be made with corporate funds. If you have any questions regarding how much your dealership or dealership group can still contribute this election cycle. Contact NJ CAR President Laura Perrotta at (609) 883-5056, Ext. 330, or by email at lperrotta@njcar.org. NJ CAR encourages dealers who have not yet contributed to support CAR-PAC’s efforts on behalf of ALL New Jersey franchised automotive retailers. The following dealerships contributed to CAR-PAC between January 1, 2024, and December 31, 2024: Ace Ford Acme Motors Acura of Ocean Acura of Ramsey Acura Turnersville All American Ford In Point Pleasant All American Ford of Paramus All American Ford Subaru of Old Bridge All American Ford Inc. Atlantic Chrysler Jeep Volkswagen Audi Eatontown Audi Freehold Audi Meadowlands Audi Princeton Autoland Chrysler Jeep Dodge Ram Autoland Toyota Autosport Acura of Denville Avalon Honda Barlow Buick GMC — Manahawkin Barlow Buick GMC — Woodbury Barlow Chevrolet Bell Audi Bellavia Chevrolet Buick Bennett Chevrolet Bentley Edison Bentley Truck Services Logan Twp. Benzel Busch Motor Car Corp. Bill Vince’s Bridgewater Acura BMW of Atlantic City BMW of Bridgewater BMW of Ramsey BMW of Springfield BMW of Tenafly BMW of Turnersville Boardwalk Honda Bob Ciasulli Auto Group Bridgewater Kia Brogan Cadillac Company Buhler Chrysler Jeep Dodge Buick GMC of Mahwah Burke Motors Inc. Burlington Chevrolet Inc. Burlington Chrysler Dodge Jeep Ram Burlington Hyundai Burlington Kia Burlington Volkswagen Burns Buick GMC Hyundai Burns Honda Cadillac of Mahwah Campbell Freightliner Causeway Ford Lincoln Causeway Honda Causeway Hyundai Causeway Nissan Celebrity Ford of Toms River Chapman Ford Lincoln Mazda Cherry Hill Imports Cherry Hill Volvo Cars Chrysler Dodge Jeep Ram of Princeton Chrysler Jeep Dodge Ram of Englewood Cliffs Ciocca Chevrolet Buick GMC Ciocca Chevrolet Cadillac Buick GMC of Flemington Ciocca Chevrolet of Princeton Ciocca Chrysler Dodge Jeep Ram of Flemington Ciocca Ford Lincoln of Flemington Ciocca Ford Lincoln of Lawrenceville Ciocca Kia Ciocca Subaru Ciocca Subaru of Flemington 24 NEW JERSEY auto retailer
Ciocca Subaru of Pleasantville Ciocca Volkswagen of Flemington/ Audi Flemington Circle BMW Circle Chevrolet Company Circle Infiniti Coast Cities Truck Sales Inc. Coleman Buick GMC Cadillac Colonial Airstream Cranbury Buick GMC Crestmont Toyota Volkswagen D & C Honda of Tenafly DARCARS Lexus of Englewood Davis Honda Dayton Toyota DCH BMW of Bloomfield DCH BMW of Freehold DCH Brunswick Toyota DCH Ford of Eatontown DCH Freehold Toyota DCH Millburn Audi DCH Montclair Acura DCH Paramus Honda DiFeo Kia Douglas Infiniti Douglas Volkswagen Dover Dodge Chrysler Jeep Inc. East Coast Toyota Echelon Ford Inc. Edison Nissan Elite Acura Elkins Chevrolet Empire Mazda and Toyota of Green Brook Empire Nissan of Hillside F.C. Kerbeck & Sons Family Ford Inc. Ferrari Maserati of Central New Jersey Fette Ford Inc. Fette Infiniti Ford of Englewood Inc. Franklin Sussex Auto Mall Inc. Franklin Sussex Hyundai Frank’s Truck Center Inc. Fred Beans Ford of Washington Fred Beans Hyundai of Flemington Fred Beans Nissan of Flemington Fred Beans Toyota of Flemington Freehold Buick GMC Freehold Dodge Inc. Freehold Ford Freehold Subaru Fullerton Alfa Romeo Maserati Fullerton Automotive Corp. Fullerton Ford Gabrielli Kenworth of New Jersey — Dayton Gabrielli Truck Sales — Ridgefield Park Garden State Honda — Clifton Garden State Honda — Passaic Gateway Kia of North Brunswick Gateway Toyota Genesis of Brunswick — TT of G Brunswick Genesis of Cherry Hill Genesis of Englewood Gensinger Motors Inc. Gentilini Chevrolet Gentilini Ford Inc. George Wall Ford Glen Toyota Global Auto Mall 22 LLC Global Kia of North Plainfield Gold Coast Cadillac Green Brook Buick GMC H & H Mack Sales Haldeman Ford Haldeman Ford of Hightstown Haldeman Lexus of Princeton Hamilton Honda Hawthorne Chevrolet Hilltop Nissan Inc. Holman Automotive Group Honda of Bridgewater Honda of Freehold Honda of Hackettstown Honda of Mahwah Honda of Princeton Hoover Truck Center Hudson Chrysler Jeep Dodge Hudson County Motors Hudson Honda Hudson Hyundai Hudson Nissan Hudson Subaru Hudson Toyota Hunter Jersey Peterbilt — Clarksburg Hyundai of Trenton Infiniti of Flemington Irwin Lincoln Mazda J & S Mitsubishi Jaguar Land Rover Cherry Hill Jaguar Land Rover Englewood Jaguar Land Rover Monmouth Jersey City Kia Jim Curley Buick GMC Jim Curley GMC of Lakewood Joe Heidt Motors Johnson Dodge Chrysler Jeep Johnson GMC Cadillac Inc. Joyce Honda Karma Westfield Kia of Riverdale Kindle Ford Lincoln Land Rover Paramus Land Rover Parsippany Larson Ford Inc. Lexus of Atlantic City Lexus of Bridgewater Lexus of Cherry Hill Lexus of Edison Lexus of Route 10 Liberty Hyundai Liberty Kia Liberty Subaru Inc. Liberty Toyota Liccardi Chrysler Dodge Liccardi Ford Inc. Liccardi Mitsubishi Lilliston Chrysler Dodge Jeep Lilliston Ford Inc. Lincoln of Wayne Lucas Chevrolet Lucas Chrysler Jeep Dodge Lynnes Hyundai Lynnes Nissan Lynnes Subaru Madison Honda Mahwah Ford Sales & Service Inc. Malouf Buick GMC Inc. Malouf Chevrolet Cadillac Inc. Malouf Ford Lincoln Inc. Manahawkin Chrysler Dodge Jeep Manahawkin Kia Maplecrest Ford Inc. Maplecrest of Union Matt Blatt Glassboro Imports Mitsubishi Matt Blatt Kia — Egg Harbor Twp. Matt Blatt Kia Toms River Matt Blatt Nissan Maxon Buick GMC Maxon Hyundai Mazda of Lodi McGuire Buick GMC McGuire Cadillac McGuire Chevrolet Medford Ford Mercedes-Benz of Caldwell Mercedes-Benz of Cherry Hill Mercedes-Benz of Flemington Mercedes-Benz of Morristown Mercedes-Benz of Newton Mercedes-Benz of Paramus 25 NEW JERSEY auto retailer
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