The Risk Of Cyberattacks For Auto Dealers Is Higher Than Ever, And So Are The Potential Costs

• Published date: 18 October 2021
• Subject Matter: Privacy, Technology, Privacy Protection, Security
• Law Firm: Fogler, Rubinoff LLP
• Author: Mr Justin Jakubiak and Keira Zlahtic (Summer Student)

PRIVACY BREACHES raise majorreputational and legal liabilities for autodealers of all sizes.

Why? Auto dealerships collect a great deal of personally identifiable information, in some cases, even more than banks. By accumulating consumer credit applications, credit card numbers, Social Insurance numbers, and financing information - your business is a prime target for cybercrime.

The consequences for failing to take preventative measures range from reputational fallout and customer mistrust to governmental investigations, fines, breaches of dealership agreements with respective manufacturers, and civil liability.

Snooping Gets You Sued

Intrusion upon seclusion is the term used for cases where a person intentionally accesses another's private information or affairs. If the invasion is highly offensive to the reasonable person, a lawsuit is possible.

The key features of this cause of action are:

1. the defendant's conduct must be intentional or reckless
2. the defendant must have invaded the plaintiff's private affairs or concerns, without lawful justification
3. a reasonable person would regard the invasion as highly offensive causing distress, humiliation or anguish

If these requirements are met, a court may award damages.

Are Auto...