Pub. 19 2020-2021 Issue 3

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 3 | 2 0 2 0 26 new jersey auto retailer Hopefully, all dealerships have made the appropriate investment in training and reviewing their staff’s behavior to ensure all personal and non-public information is protected as required by Federal Privacy and Safeguard Rules. Written pol- icies and procedures should consistently go hand in hand with employee actions. However, the gaps between what is expected and what actually happens in showrooms still vary greatly from dealership to dealership. Let’s consider some facts. • Compliance is not optional • Training is temporary • Turnover is consistent • Speed and transparency are a necessity today to stay competitive • Fraud is on the uptick • The new landscape includes “virtual” remote deals Transactions could conceivably begin on three different plat- forms (walk-in, web applications and Digital Retailing) , yet the com- pliance steps are consistent regardless of where the engagement starts. As a result, the behavior is sometimes inconsistent or incomplete. Let’s go through a typical vehicle sales process, and identify some of the risks, as well as real-life results of non-compliance. The Meet and Greet A dealership employee engages with a customer and, at some point, asks for a driver’s license and maybe an insurance card. Upon collection, the dealership immediately has the responsi- bility to safeguard that information per the Safeguards Rule's re- quirements. Dealers must also retain this information for the sub- scribed period of time, depending on the engagement outcome. So what are the risks to the dealership in this simple process? • The license could be fraudulent • The license could be expired • The copy could be lost, misplaced, stolen, thrown away (all of which violate your Privacy Statement and Federal Safeguards requirements). • How is this info requested and received “remotely”? Are images stored in a salesperson cellphone or personal email account? Compliance Is Critical To Maintaining Dealership Operations BY DOUG FUSCO