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FTC Orders Auto Dealer Software Co. To Boost Data Security

Law360 (June 12, 2019, 10:11 PM EDT) -- The Federal Trade Commission built on recent efforts to make its data security enforcement orders stronger and more specific by announcing a settlement Wednesday with an auto dealer software provider whose allegedly lax data security led to a breach that exposed unencrypted personal information of about 12.5 million consumers.

In a complaint filed along with the parties' proposed settlement agreement, the FTC accused LightYear Dealer Technologies LLC, which does business as DealerBuilt, of violating the unfairness prong of Section 5 of the FTC Act as well as the federal Gramm-Leach-Bliley Act’s Safeguards Rule by failing to implement readily available and low-cost measures...

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