Despite the FTC Safeguards Rule now being fully enforceable, many dealerships continue to struggle with compliance, not because they don’t care, but because they underestimate how closely regulators examine day-to-day operations.
You’ve likely got the policies in place. But policies aren’t enough anymore.
Today’s audits focus on proof: how your safeguards work in real life, not just on paper. Let’s take a look at where dealerships are falling short in 2026, and how to close the gap between compliance policy and practice.
1. Believing GLBA Compliance Is “One and Done”
Most dealerships check a few boxes and assume they’re good to go:
- A cybersecurity provider
- A written information security program (WISP)
- A completed risk assessment
The problem? That’s only the foundation. Auditors want to see how customer data is protected from the moment it’s created to the moment it’s destroyed. If safeguards live in a binder, but not in daily workflows, your dealership is at risk.
2. Ignoring Everyday Document Chaos
Despite digital tools, dealerships still rely on a lot of paper. Auditors regularly find:
- Sales documents left sitting on printers
- Paper files in unsecured locations
- No consistent process for retention or destruction
The FTC Safeguards Rule doesn’t distinguish between digital and physical data, both need protection. Overlooking paper documents is one of the most preventable compliance mistakes.
3. Treating Printers Like Dumb Devices
Here’s the truth: your copiers and printers are mini-computers. They:
- Store customer data on internal drives
- Connect to your dealership’s network
- Handle high volumes of sensitive information
Without controls like secure print release, access restrictions, or proper disposal protocols, these devices become compliance blind spots.
4. Misunderstanding Auditor Expectations
Many dealerships assume good intentions and verbal explanations will satisfy an audit. They won’t.
Auditors look for:
- Controlled access to customer data
- Repeatable document handling processes
- Documented destruction procedures
- Consistency across departments and locations
In other words, they want systems that enforce good behavior, not policies that hope for it.
5. Underestimating the Power of Automation
The key to proving compliance? Systems that don’t just suggest secure behavior, they enforce it.
Automation tools help dealerships:
- Route documents securely and automatically
- Control who can access what (and when)
- Enforce retention schedules
- Log document movement, access, and destruction
These systems eliminate the guesswork. They create audit trails and build confidence, for your team and your auditors.
Let’s Make Compliance Simpler
You don’t need more binders or policy memos. You need workflows that do the right thing by default, across every department, every day.
At Applied Innovation, we help dealerships secure every touchpoint where customer data lives, whether that’s on a server, a printer, or in a shred bin.
Let’s talk about how we can help you bridge the gap between policy and practice.
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