Dealer Data Guidance – Service Provider Dealer Data Access Addendum
Attached please find a sample Service Provider Dealer Data Access Addendum (“Addendum”) (andcover memo) created by NADA Legal and Regulatory Affairs for dealers to use with their third party service provider vendors. As you know, in August 2013 NADA Legal and Regulatory Affairs sent a memo to all NADA members that contained an overview of the primary regulatory issues surrounding Dealer Data, numerous practical tips for dealers to consider when protecting their data, as well as samples of the contract provisions required under federal law when a dealer wishes to allow access to Dealer Data with a third party service provider.
The Addendum is a follow up to that guidance, and was drafted for dealers in an effort to clarify and simplify dealers’ obligation to ensure that their applicable vendor contracts contain certain provisions required under federal law. It is a sample only, and should be used by dealers only after consultation with their legal counsel. Adoption of the Addendum is not the only way dealers can meet their legal obligations and it may not be right for every situation. However, if they choose, dealers can use the Addendum to amend their service provider legal agreements to satisfy the applicable contractual requirements.
We encourage you to review the attached Addendum and cover memo with your counsel, and if applicable, to present the Addendum to your service provider vendors for signature.
NADA will address the Addendum and related issues in greater detail in several workshops at the upcoming NADA Convention in New Orleans, and will continue to work with dealers, manufacturers, vendors, and others toward greater understanding and compliance with all data privacy and safeguarding requirements.