Proposed OCCC Amendments Signal Increased Safeguards Compliance Standards

• By: TIADA Compliance
• On: 08/14/2024 09:53:55
• In: Texas Posts
• Comments: 0

Information Security Program

Protecting customer information is more critical than ever. The OCCC's proposed amendments emphasize the importance of maintaining a robust information security program. Specifically, dealers must have written policies and procedures that align with the Federal Trade Commission's Safeguards Rule (16 C.F.R. part 314).
 
For dealers handling customer information for 5,000 or more consumers, the requirements are even more stringent. These dealers must maintain a written incident response plan and conduct regular written risk assessments. This ensures that there are clear protocols in place in the event of a data breach or other security incident.
 
It is essential for dealers to review their current information security measures and make any necessary adjustments to comply with these new requirements. Investing in robust security practices helps to meet regulatory obligations and builds trust with customers by protecting their sensitive information.

Data Breach Notifications

Data breaches have become an unfortunate reality for many businesses, and the OCCC's proposed amendments reflect the need for transparency when they occur. Under the new rules, dealers must maintain the text of any data breach notification provided to retail buyers for four years. This includes notifications under the Texas Business & Commerce Code, §521.053.

Additionally, any notifications provided to government agencies, such as the Office of the Attorney General, must be maintained for four years. This requirement underscores the importance of being prepared for potential breaches and having a clear process for documenting and communicating them.

Dealers should ensure that they have a thorough understanding of their obligations under these proposed rules. Maintaining proper documentation of data breach notifications will be crucial for demonstrating compliance in the event of an audit or investigation.
 

Preparing for Compliance

The OCCC's proposed amendments signal tightening regulatory expectations for Texas automobile dealers. By focusing on enhanced recordkeeping, stringent data security measures, and thorough documentation of data breaches, these changes aim to protect consumers and ensure transparency in the industry.
 
Dealers should take proactive steps to review and update their processes and systems to ensure they meet these new requirements. Staying ahead of the curve will help avoid potential penalties and position your dealership as a responsible and trustworthy business in the eyes of both customers and regulators.
 

Enroll in TIADA's Updated Safeguards Course

To help auto dealers better protect their businesses, TIADA has recently updated its Safeguards Course. This comprehensive training program covers essential topics such as data protection, cybersecurity best practices, and regulatory compliance. By enrolling in the course, dealers can equip themselves with the knowledge and tools to defend against cyber threats and ensure their operations remain secure.

Enroll in TIADA's Safeguards Course