2025 Pub. 6 Issue 2

This shows no meaningful difference in enforcement volume or intensity between administrations. Regardless of changes in leadership, the FTC has remained active in pursuing consumer protection violations — including those tied to cybersecurity and data handling. MYTH #2: A SECOND TRUMP TERM WILL BRING IMMEDIATE DEREGULATION Some in the industry believed that a second Trump term would quickly reduce or delay enforcement of the Safeguards Rule. But enforcement patterns during the first 100 days of each term suggest otherwise. • In the first 100 days of Trump’s second term (2025): 2 enforcement actions in the auto industry. • Biden’s first term (2021): 0 actions in the auto industry. • Across all industries: • Current Administration: 49 FTC enforcement actions • Past Administration: 51 FTC enforcement actions Again, the numbers are virtually identical. The FTC has proven to be a nonpartisan enforcement body — continuing its oversight work no matter the political landscape. THE REAL ENFORCEMENT MECHANISM: BREACH REPORTING One reason some dealerships downplayed the risk of FTC enforcement is that, historically, few enforcement actions have directly cited the Safeguards Rule. However, that changed in May 2024, when a new FTC breach notification requirement took effect. This rule mandates that covered entities — including auto dealerships — must notify the FTC within 30 days of discovering certain security breaches involving customer information. This change created a built-in enforcement mechanism. If a dealership suffers a qualifying breach and fails to report it, they are now subject to regulatory scrutiny, not based on a random audit, but due to a failure to comply with a mandatory disclosure requirement. This adds insult on top of injury for a breached dealership. THE FAQ THAT RAISED EYEBROWS In May 2025, the FTC published a new FAQ addressing common questions about the Safeguards Rule, including which businesses are covered, how to meet encryption standards, and what a written information security program should include. While the agency FTC Enforcement in the Auto Industry (Full Term Comparison) Trump: 19 cases | Biden: 20 cases Nearly identical FTC enforcement in the auto industry. FTC Enforcement Across All Industries (Full Term Comparison) Trump: 925 cases | Biden: 926 cases Virtually no difference in total enforcement. FTC Enforcement in the Auto Industry (First 100 Days) Trump: 2 cases | Biden: 0 cases More FTC auto enforcement in Trump’s first 100 days. FTC Enforcement Across All Industries (First 100 Days) Trump: 49 actions | Biden: 51 Nearly identical enforcement across all industries in their first 100 days. Regardless of change in administration, FTC enforcement remains active and consistent. Auto dealers and all U.S. businesses should continue to take compliance risk seriously, regardless of who’s in the White House. WVADA NEWS 27

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