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Continued from previous page “I learned about that from my NIADA Amico suggested dealerships
Dealer 20 Group,” Watson said. “Then I should look at this scenario
“This problem has been on the auto market’s tested it with my own car that I recently
radar for years,” he said. “As cars continue sold. “With the rise of ID theft, it’s certainly as an opportunity to set
to be more connected and more people something dealers need to keep on their themselves apart from
carry smart devices, it will continue to be radar. It’s very easy to implement as a competitors by wiping
a bigger problem. And eventually, every car policy.” personal data from their cars
will be impacted.”
Privacy and Security Laws – and promoting that fact.
Levine likens the issue to a similar case years
ago involving copy machines. Offices and As governments begin to address the issue Smart dealers, he said, can get ahead of
businesses leased copy machines, and every of persistent data, they must answer one the curve and market that as a competitive
time a copy was made, the image was stored question: Who should be responsible for advantage over other dealerships that don’t
in the machine. When the copy machine wiping a car clean of personal information offer the service.
company picked up the old machine, it also before it’s sold?
carried away a lot of personal and corporate “This is a massive problem that hasn’t been
data stored on the machine – resulting in Manufacturers? Dealerships? Auctions? addressed,” McCook said. “And we’re barely
litigation. Technology providers? Consumers? And seeing the tip of the iceberg. “It won’t be a
should it be a federal issue or a state issue? cakewalk to solve it, either. Last year, we
Levine said those suits can be based on state had 2 million repos in the U.S. That means
privacy laws or negligence claims. And, he “I believe the onus should be on the 2 million opportunities for personal data to
added, “Plaintiffs’ lawyers will attempt to automobile manufacturers,” said Joel be lost. Who is going to step up to the plate?”
fit their claim under an unfair or deceptive Kennedy, president of the National
acts and practices claim to try to get triple Automotive Finance Association, a trade What Can Dealerships Do?
damages and attorney’s fees.” association serving the non-prime auto
financing industry. “If they make it easy Here are some tips from industry experts
Levine said customers should be concerned for a consumer to populate the car with on minimizing risk from persistent data:
when they sell or return a vehicle to a data, they should take responsibility for • If you buy a vehicle from an auction,
dealership. “They don’t know where their helping the consumer wipe the car clean ask the auction what steps it has taken
vehicle will end up – on the dealer’s lot, of that data.” to clean data out of the car. Auctions
at auction… Who knows?” he said. “Plus, can easily use the manufacturer’s
the majority of car owners have no idea Charles Henderson, a security expert remote access system to reset the
how to wipe their data off of their vehicle. and Global Managing Partner of the IBM vehicle according to its VIN – it takes
Dealers have to take this onto themselves Security X-Force, said automakers will only a day to do it.
and do right by the customer. It deserves likely do just that in the not-too-distant • Put a process in place to remove
consideration by the dealership to put it future. “I expect the auto industry will consumers’ personal data. Just as a
into policy and develop a process to protect improve mechanisms to clear out persistent vehicle is inspected for safety and
the customer.” data,” he said. “Why should a third party maintenance issues and reconditioned
have to fix the problem?” when it’s taken in, wiping the vehicle of
Some dealers are already doing that. One personal data and resetting it back to
of them is Jeff Watson, owner of 4 Seasons For now, the data privacy challenge factory settings should be included on
Auto Sales in St. George, Utah. Two years continues to grow. Newer connected the checklist.
ago, he added “depersonalization” to vehicles that collect more data will be put • Adopt third-party technology to erase
his dealership’s reconditioning process. on the road. Legacy vehicles will continue personally identifiable information.
Previously, his service team simply looked to change hands, and personal data will • Call the vehicle’s manufacturer directly
in the glove compartment and trunk for move to every new owner. to gain remote access to erase the data.
personal items and removed stickers and • Work with consumers. Ask them
decals. Now the team resets the vehicle Auto manufacturers will develop more questions and check vehicles for any
to its original factory settings and deletes connected technology that makes driving type of personal information before
any personal data, including addresses in easier and safer – but captures more accepting them onto your lot.
navigation systems, phone numbers and personal data. • Become more active politically and
even music lists. ask local and state legislators about
enacting laws regarding this issue. n

6 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2022