PrivacyWatch: Data heisted from car dealers is sold

From Automotive Digest, a charming story. ADP Dealers Services (a division of the payroll giant) was caught surreptitiously taking data from auto dealers and selling it to Carfax, the automotive data company. The rest of their summary of an Automotive News story not available to nonsubscribers is below. I’m glad that they are aware of the sensitivities.

Situation
1. ADP Dealers Services admits taking data from dealers; sold it w/o their knowledge
2. Says repair and maintenance records taken after hours, then sold to Carfax
3. ADP says it’s stopped pulling data due to dealer complaints
4. Won’t say how many dealers involved in action from Dec through March
5. Experts say dealers need to have lawyers review all contracts w/ vendors
6. Some dealer groups want states to require dealer consent before vendors pull data

Significant Points
1. At issue is who owns data on dealer computers
2. But automakers and vendors often have access
3. Dealers worry about identity theft, privacy lawsuits
4. ADP furnished Carfax w/ VIN data, not protected by federal privacy laws
5. ADP competitor, Reynolds & Reynolds, sells data to Power Information Network
6. But contract promises to get dealer’s permission

Says
“And they’re taking our information and selling it to other organizations. Every dime of that money (paid to ADP) needs to be returned to the dealers.” — David Farris, owner, Farris Motors

“While the goal of the program was in the best interest of dealers and consumers, a better job should have been done thinking through potential dealer concerns and communicating to dealers the rationale and advantages of the program.” — Kevin Henahan, senior VP marketing, ADP

“Privacy is a huge area of concern. We are aware of the sensitivities.” — Mark Feighery, spokesman, Reynolds & Reynolds

Web Source
http://www.autonews.com/article.cms?articleId=54175
http://www.adp.com
http://www.carfax.com
http://www.reyrey.com