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FTC and Car Dealership Software Company Reach Security Settlement

FTC and Car Dealership Software Company Reach Security Settlement (Companies to Watch)

The FTC recently settled with LightYear Dealer Technologies, maker of DealerBuilt software, over allegations that the company failed to provide adequate protection for the personal data it houses. This information includes sensitive personal (Social Security numbers) and financial (payroll information and credit card numbers) information. According to the FTC, the company had engaged in several practices that constituted a failure to provide reasonable security, namely (1) not having a written information security policy, (2) not having reasonable training or guidance for employees, (3) not assessing risks to personal information on its networks, (4) not using “readily available” security measures or verifying the effectiveness of protection measures, (5) not having reasonable security controls, (6) storing information in clear text, and (7) not having a reasonable way to select and install devices that will access personal information.

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