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personal information stored in a car’s your car to a dealership or another person, important issues, but many dealers haven’t
computer system. or if it goes to auction, you’re selling more thought about or don’t understand the
than just your vehicle,” he said. “You could potential repercussions.
But that doesn’t mean anything goes. Magee be giving them personal information from
said the FTC can protect consumer privacy your navigational unit, passwords to your If a consumer discovers his or her personal
using the FTC Act’s prohibitions against garage door opener, your home address, information has been shared or stolen
unfair or deceptive practices. personal photos, a list of your contacts and from a vehicle sold to a dealership, that
even banking information.” dealership could be threatened with a
“If a company makes a promise about how it lawsuit – defending against which can be
protects a consumer’s personal information To combat that problem, on June 1 difficult and costly in terms of legal fees and
and fails to abide by that promise, it could ARA announced a partnership with potential fines.
open itself to enforcement under the FTC Privacy4Cars. com, a technology company
Act,” he explained. focused on “identifying and resolving At the very least, the dealership could end
data privacy issues across the automotive up with a bad reputation through word
“Similarly, even without such a promise, a ecosystem.” of mouth, social media, online reviews or
company that engages in acts or practices even being spotlighted in a television news
that are unfair could be subject to an ARA members will have access to segment.
enforcement action.” Privacy4Car’s technology to help them
delete personal data from repossessed Remarketers and dealers reselling vehicles
Magee said an act is considered unfair vehicles, minimize member risk and without first erasing consumer data
under the FTC Act if it “causes or is likely to differentiate themselves from competitors. captured in onboard computers and
cause substantial injury to consumers that convenience systems can put themselves at
is not reasonably avoidable by consumers McCook said ARA, along with “other risk of violating consumer protection laws,
themselves and not outweighed by organizations like auction houses, Amico said.
countervailing benefits.” dealerships and finance groups,” believes
Privacy4Cars founder and CEO Andrea “Dealers have to realize that whoever holds
Legislative wheels move Amico “is at the forefront of this problem the title to a vehicle is responsible for any
slowly, so in the meantime and has a firm grasp on how to solve it.” data security problems or breaches,” Amico
private firms are stepping up Amico said he and his staff have been said. “They have to treat a vehicle like any
electronic device, such as a smartphone
to try to tackle the problem. developing the Privacy4Cars technology or computer. Once they face a lawsuit,
for seven years. In 2014, he authored the the math quickly adds up, especially for
This year, KAR Global – parent company first statistical study on how frequently data independent dealers. It’s just good data
of ADESA auctions and digital auction is left in rental and for-sale vehicles and the hygiene to eliminate the personal data.”
platform BacklotCars – launched a kinds of data found there.
new training program for employees, Whose Responsibility Is It?
symbolized by animated mascot Privacy While completing that project, he realized
Pam, to advance its commitment to data how extremely common it was for drivers Because there is no federal law that
privacy in the digital age. and occupants to leave – and unknowingly specifically addresses data stored in
give others access to – highly detailed vehicles – rather, the issue is covered by an
“As the growing patchwork of government digital footprints of personal information in assortment of laws from state to state – it
and customer requirements continues to vehicles they no longer owned or controlled. isn’t always clear who has responsibility for
evolve,” KAR chief privacy officer Michelle that data.
Bray said, “Privacy Pam will help ensure Amico, a cybersecurity and vehicle privacy
every KAR employee around the globe is expert, designed his patent-pending But ignoring the issue is
aligned, aware and mobilized around this process for deleting personal information
priority.” from vehicles and launched his app in 2018. taking a risk.
His company recently launched a new
One group that’s taking a proactive approach website that offers a variety of resources for Steve Levine, an attorney and chief legal
to personal information is the American businesses. and compliance officer of Ignite Consulting
Recovery Association, the world’s largest Partners, said the responsibility falls on the
organization of professional repossession Repercussions dealership to wipe a used car clean of any
agents. Executive director Les McCook personal data.
said in-vehicle data security is a “super Buying and selling used vehicles whose
big issue” for the industry. “When you sell systems contain PII creates a number of Continued on next page

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