The New Jersey Division of Consumer Affairs sent warning letters to over 3,000 auto dealerships reminding them of the state's data deletion law, which requires dealerships to offer to delete personal data from vehicles when accepting them for resale or lease. Failure to comply can result in fines of $500 for first offenses and $1,000 for subsequent offenses, aimed at preventing unauthorized access to sensitive consumer information stored in vehicle infotainment systems.
Dealerships must offer to delete consumers' personal data from vehicles by following manufacturer-specified techniques or performing a factory reset. They are permitted to charge a reasonable fee for this service but must disclose it in advance, and must also advise consumers that they may delete the data themselves or through another vendor.
In-house legal teams should review customer sales and lease agreements (especially trade-in or buyback terms), vendor service agreements (e.g., with detailing or tech service providers), and any data processing agreements involving vehicle data. Key clauses to examine include data deletion obligations, data retention schedules, consent mechanisms for personal data processing, and breach notification provisions related to infotainment systems. Changes may be needed to explicitly require offering data deletion services upon vehicle acceptance for resale or lease, define standardized procedures for wiping infotainment systems, update privacy notices to reflect deletion rights under New Jersey law, and incorporate compliance warranties or indemnities to mitigate fines of $500-$1,000 per violation.
Entity
auto dealerships
Also known as: Auto Dealerships
Industry
AutomotiveOfficial Press Release
https://www.njoag.gov/ag-platkin-division-of-consumer-affairs-reminds-nj-auto-dealerships-of-obligation-to-help-prevent-unauthorized-access-to-consumer-data-stored-on-vehicles/
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"auto dealerships statewide"
"the New Jersey data deletion law"
"mandates that dealerships offer to delete consumers’ personal data when accepting vehicles for resale or lease."
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