Newsletter - Spring 2004
Dealers Must Comply with Privacy, Safeguard, Telephone, Fax and E-Mail Laws
by Edward J. Castellani
Over the past few years, federal and state governments have passed numerous privacy laws that dealers must comply with or face substantial penalties. Some of these new laws include the following:
USA Patriot Act. This federal law prohibits dealers from entering into any transaction, including a sale of parts or an oil change, with an individual or entity who is on the government list. Dealers are required to check the government list before entering into any transaction.
Safeguard Rules. The Safeguard Rules require dealerships to develop a written information security plan to protect customer information, including designation of a program coordinator and instructions to all employees.
Telephone, Fax and E-mail. The federal and state governments have both adopted regulations on telephone calls, unsolicited fax advertisements and e-mails. Penalties for violation of any of the above rules are significant. Dealers should verify that their dealership operations meet these new rules.
Mr. Castellani is a member of our Business Department. He practices in the Lansing office and may be contacted at 517.377.0845 or toll free at 800.748.0436. You can also contact him via e-mail at ecastellani@fraserlawfirm.com.