A Delay in the Safeguards Rule, But Dealers Should Not Wait By HAO NGUYEN, ESQ., ComplyAuto I n this article, we discuss the Federal Trade Commission’s (“FTC”) delay of the effective date of the revised Safeguards Rule (“Rule”) and its practical impact on your dealerships. We will then explain why you should not wait to implement data protection and cybersecurity safeguards at your dealership because the FTC will still come after you under another section of the FTC Act that gives them broad authority. Safeguards Rule — Some Requirements Delayed Until June 9, 2023 The FTC gave dealers across the country an early Christmas present when it announced on Nov. 15, 2022, that it is extending the deadline for the Rule by six months. However, it is important to note that this extension only affects some of the requirements and will make them effective on June 9, 2023. Specifically, the provisions that have been extended to June include the following: • Designating a qualified individual to oversee the information security program; • Completing written risk assessments; wvcar.com 12
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