For car dealerships, compliance is more than a box to check – it is an essential part of doing business, in an increasingly regulated industry. From personal customer details to transaction histories, dealerships handle sensitive data daily, making them targets for cyber-attacks. Ensuring regulatory compliance is critical not just for maintaining customer trust, but also to prevent data breaches and legal penalties. For dealerships struggling to achieve this, it may be worth outsourcing to a managed service provider (MSP).
Car Dealership Compliance: The Challenges
Car dealerships face a range of regulatory requirements that affect almost every aspect of their operations, including:
Data Privacy Regulations: Dealerships collect and store large amounts of customer data, which must be protected in accordance with data protection laws. Some of these include the California Consumer Privacy Act (CCPA), and the General Data Protection Regulation (GDPR) for dealerships operating within the EU.
Federal Trade Commission (FTC) Compliance: The FTC’s Safeguards Rule requires dealerships to establish security plans to protect customer information.
Financial Regulations: Regulations like the Truth in Lending Act (TILA) and Fair Credit Reporting Act (FCRA) apply to any business handling financial and leasing arrangements for their customers, which includes car dealerships.
Environmental Compliance: Dealerships may also be subject to environmental regulations, such as those related to waste disposal and handling of hazardous materials.
Employment and Labor Law Compliance: Like any business, dealerships need to comply with employment regulations, including wage laws, safety regulations, and anti-discrimination laws.
Each of these compliance requirements can carry severe penalties if violated – including fines, loss of licenses, and reputational damage that could take years to recover.
How MSPs Help Car Dealerships Stay Compliant
Compliance is a complex, ongoing task requiring vigilant monitoring. MSPs can be valuable partners for dealerships attempting to navigate this field and secure their data.
1. Data Security and Privacy Management
MSPs offer robust cybersecurity solutions designed to protect customer data. They implement solutions such as encryption, multi-factor authentication, and data backups, helping dealerships secure sensitive information in accordance with regulations. They also monitor for potential threats, reducing the risk of data breaches.
2. Regulatory Expertise and Documentation Support
It can be a challenge for dealerships to keep up with regulatory changes and maintain compliance over time. MSPs have the necessary expertise to help their clients meet their obligations, and document every step of the process – which is particularly important if the dealership gets audited.
3. Risk Assessments
MSPs often conduct regular risk assessments to identify potential vulnerabilities within systems and processes. This allows dealerships to better understand whether their data is secure, and provides actionable insights for improvement.
4. Employee Training and Awareness Programs
For compliance measures to be effective, employees must understand their importance. To this end, many MSPs provide training programs that teach staff to recognize and respond to security threats.
5. Business Continuity and Disaster Recovery (BCDR) Planning
In the event of a data breach, system outage, or natural disaster, many regulations require dealerships to have a BCDR plan in place. MSPs specialize in this area, and can help their clients maintain compliance even during an emergency.
Solve Compliance Concerns with Expert Guidance
As regulatory compliance becomes more complex, dealerships face mounting pressure to increase security across the board. The scope of the requirements involved can be overwhelming for many, especially those without dedicated resources or expertise. Partnering with an MSP solves many of these concerns by providing experts who are familiar with industry-specific regulations and cybersecurity best practices. This allows dealerships to focus on growth, without needing to worry about potential data breaches, fines, or reputational damage.
Shartega IT provides full managed cybersecurity services tailored towards car dealerships, and can address any compliance concerns you may have. We understand that compliance starts with a strong security posture, and are ready to help you defend your company. Speak to a cybersecurity expert to learn more.
