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FADA Recommendations: Consumer Lawsuits Relative to Websites

FADA is aware that an individual in South Florida has filed numerous suits claiming that the chat feature on a dealer's website violates Florida's Security of Communications Act (section 934.01). The basis of the claim is that chat users are not informed that their chat may be recorded/maintained by the dealer. While our lawyers do not believe this violates Florida law and have moved to dismiss many of these suits, there is an easy way to protect against these types of claims. If you use a third-party vendor they undoubtedly place a link to their terms and conditions in the chat box. Our lawyers believe this is sufficient to meet any disclosure requirements. However, in an abundance of caution, FADA suggests that you add the following type of disclaimer to your chat box:

"We use software that enables you to have a conversation with us via our website. Chats or texts on the website may be monitored, stored, and/or shared as described in our privacy policy/terms of use. By utilizing chat or text features on our website, you agree to the terms and conditions contained in our privacy policy/terms of use."

Latest CDK Updates

• CDK Global said most of its customers are back online with the company's dealership management system as of July 2, nearly two weeks after cyberattacks led to a massive shutdown. Read the full story here.



• CORO and FADA Endorsed Partner ComplyAuto have teamed up to offer dealers free email security, phishing help, and compliance solutions.

• As ComplyAuto has discussed on several occasions, the CDK cyber incident could trigger, among other duties, the obligation for affected dealers to notify the FTC regarding the incident under the federal Safeguards Rule. Yesterday, it was announced that the FTC and CDK have agreed that should CDK's internal investigation reveal that a notice is required, that CDK will issue one omnibus notice to the FTC covering the incident, and that notice would relieve each CDK dealer's obligation to independently notify the FTC. Indeed, according to NADA, the FTC has stated that "dealers have no obligation to file a breach notification with the FTC related to this matter." Read more about what this means for dealers here.

• FADA Associate Member Forvis Mazars brings dealers a list of action items to consider as dealerships prepares to return to the CDK environment. Find the list here.