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$120,000 Fine Without a Breach? It Happened

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sumit @sumit89 · Mar 21, 2025

$120,000 Fine Without a Breach? It Happened.

A Midwest dealership learned the hard way that compliance failures can be costly.
🛑 No hack.
🛑 No stolen data.
🛑 No cyberattack.

Yet, they were fined $120,000 for:

  • Storing customer data without consent
  • Having no visible privacy policy
  • Failing to offer data management options for customers

The message is clear: Compliance is no longer optional.

3 Common Data Privacy Pitfalls for Dealerships

1. Failing to Get Proper Consent

Dealerships often collect sensitive customer data—driver’s licenses, phone numbers, credit reports—without explicit permission.

🔎 What’s at Risk?

  • Legal violations (GDPR, CCPA, DPDP)
  • Costly fines and lawsuits
  • Loss of customer trust

Fix It: Implement consent-based workflows where customers are fully informed about data usage and provide clear approval.


2. Missing or Misleading Privacy Policy

A transparent privacy policy is a legal requirement. Customers deserve to know:

  • What data is collected
  • Why it’s stored
  • Who has access
  • How to opt out or request deletion

Yet, many dealerships lack one—or fail to follow their own policy.

Fix It: Publish an easy-to-understand privacy policy and ensure all departments follow it.


3. No Data Access or Deletion Options

Would you be able to provide a customer with their personal data—or delete it—on request?
If not, you're non-compliant with laws like:

  • GDPR (EU)
  • CCPA/CPRA (California)
  • DPDP (India)

Fix It: Leverage tools that allow customers to access, correct, or delete their data effortlessly.


The Real Cost of Compliance Failure

🔎 Fines: Up to $250,000+ depending on the violation.
🚫 Reputation Damage: Customers lose trust.
📉 Lost Sales: Privacy missteps lead to long-term business loss.


Stay Compliant with DealerPlus

Avoid costly mistakes with DealerPlus. Our platform offers:
Consent-based data collection
Automated privacy policy management
Easy customer data access and deletion requests
Audit-ready compliance logs

Compliance isn’t just legal protection—it’s a competitive advantage.

 

🚀 Book a Free Consultation to safeguard your dealership’s future with DealerPlus.

 

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