FADA has announced an important update to the ComplyAuto Privacy tool, specifically concerning the cookie consent banner. This change will be implemented for all Privacy customers on Friday, March 15, 2024.
There has been a notable increase in litigation and attorney demand letters within the industry, alleging wiretapping related to dealership websites. These claims suggest that standard website features such as cookies, scripts, and tracking pixels may violate state and federal wiretapping laws. Google Analytics has been specifically identified under this legal theory. A recent example includes a New Jersey dealership sued for violating California wiretapping laws, with many cases being filed as class actions.
The FTC is also investigating online tracking of consumers' personal information without consent or through deceptive tactics under its UDAP authority.
To address these concerns, ComplyAuto is updating its cookie consent banners on customer websites. The changes include new language on the banners, optional banners delaying the activation of marketing cookies (analytics and targeting cookies), and updated privacy policy language.
Dealers can opt-in to these additional changes via their ComplyAuto Privacy Portal. If they choose not to activate the recommended optional banners, no action is required at this time.
ComplyAuto remains committed to protecting dealer members from legal risks and ensuring compliance with privacy laws. Dealers are encouraged to attend a webinar on April 3rd for more information about these updates.