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September 16, 2019

11 Reasons Houston Auto Dealerships Should Seriously Consider Physical Data Security

Secure Shredding Auto Dealer

Automotive Dealers, executives, professionals face a complex challenge in meeting the increasingly stringent auto dealer laws and regulations imposed by federal and state governments. There is a wide array of critical legal requirements dealers must understand and implement to avoid crippling penalties. Many auto dealerships may not feel they have the time, expertise, and human resources to implement these mandatory compliance procedures.

Failing to comply with imperative car dealer laws and regulations can be a costly mistake. PROSHRED® Security specializes in helping auto dealerships enact compliance procedures to protect their dealerships from hefty fines and potentially even heavy criminal penalties. Dealers that collect consumer data, extend credit, arrange financing, accept credit cards, or give advice on a purchase must notify customers about the information they collect, and how they protect it. Are you following the rules of the road? Is your dealership fully compliant?

Check out the top 11 most critical automotive laws and regulations you need to be aware of.


Those impacted by the Texas IDA include any business in Texas that collects personal information, whether from workers or customers. Something as simple as a printed email with the email address visible and a person’s name qualifies. The Act applies to company documents developed before, on, or after the day the Act took effect.

In complying with areas of the Act describe a company’s responsibilities as:

698(3) (d) When a business disposes of a business document which contains individual identifying info of a customer of the business, business should modify, by shredding, eliminating or various other methods, the personal identifying information to make it unintelligible or undecipherable. 698(3) (e) A business is in conformity with Subsection (d) if the business agreements with an individual or entity participated in the business of disposing of records for the adjustment of individual identifying information in support of business according to Subsection (d).

The Texas Information Disposal Act entered into law on September 1, 2005

The GLBA also requires companies to take real, tangible steps towards information security. This includes a written information security plan, a regular, thorough risk analysis, and more. Financial Institutions / Auto dealers must make specific efforts to comply or risk penalties.

Does your auto dealership comply with all of the above laws and regulations? Are you avoiding data breaches through physical security? Do you have at least one secure shred container in every department that handles consumer information (Sales, F&I, BDC, Service Drive, Body Shop, Accounting.) Many auto dealerships have not met the required compliance standards and may find themselves subject to hefty fines and other legislative regulatory and legal issues as a result of non-compliance.

To learn more about the laws and regulations concerning information security risks or receive a no obligation on-site security risk assessment, and/or to build a comprehensive Information disposal program for your auto dealership, contact PROSHRED® of Houston or call 832-947-5700 to speak with an certified information destruction specialist.

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