These exceptions include disclosures to process a transaction requested by the consumer, disclosures made with the consumer’s consent, and disclosures for law enforcement purposes. However, there are exceptions to this requirement which are set forth in sections 313.14 and 313.15 of the Privacy Rule. You only need to give them a privacy notice (and an opt-out notice) if you intend to disclose their personal information to nonaffiliated third parties. A person becomes a “consumer” when (s)he gives you personal information in the context of possibly financing or leasing a car from you. The answer depends on whether the person is a “consumer” or a “customer” - words that have their own meanings under the Privacy Rule. When do I have to give someone a privacy notice? However, if a person gives you personal information in connection with a potential transaction, even without completing a formal application - for example, if they give you personal information to get a quote on a financial package - you may have other obligations. You don’t need to give a privacy notice to someone who simply expresses an interest in buying a car from you or asks general questions about financing or leasing. Do I need to give a privacy notice to everyone who walks into my showroom? The Privacy Rule does not apply to you if a person buys a car with cash or arranges financing on their own through another lender. The Privacy Rule applies if you collect personal information about someone in connection with the potential financing or leasing of a car, even if that person does not fill out a formal application. Examples of personal information include someone’s name, address, phone number, or other information that could be used to identify them individually. If you engage in these activities, any personal information that you collect to provide these services is covered by the Privacy Rule. Provide financial advice or counseling to individuals.Arrange for someone to finance or lease a car for personal, family, or household use or.Extend credit to someone (for example, through a retail installment contract) in connection with the purchase of a car for personal, family, or household use.The Privacy Rule applies to car dealers who: Activities and Entities Covered by the Privacy Rule 1. Please note that this information does not address possible legal obligations you may have under the FTC Safeguards Rule, the Fair Credit Reporting Act, or other federal and state laws. Other business guidance is available on the FTC’s Gramm-Leach-Bliley Act page. Before reading this, you may want to familiarize yourself with the FTC’s small business guide, How To Comply with the Privacy of Consumer Financial Information Rule of the Gramm-Leach-Bliley Act, and the Frequently Asked Questions for the Privacy Regulation.
The following questions and answers show how the Privacy Rule applies to specific situations that auto dealers may face. The Federal Trade Commission (FTC) has developed these additional FAQs to help auto dealers comply with the Gramm-Leach-Bliley Act and the FTC’s Privacy Rule.
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