At a glance
- Breach notice to residents
- Without unreasonable delay
- State regulator notice
- Not required
- State consumer privacy law
- Kentucky Consumer Data Protection Act
- Dealer bond
- $100,000
On this page
Federal rules every dealer follows
These apply in every state. Each links to a free tool or guide.
- FTC Safeguards Rule (16 CFR Part 314): a written security plan, a Qualified Individual, a risk assessment, MFA, encryption and the FTC breach notice. Safeguards checklist.
- Red Flags Rule (16 CFR 681): a written identity theft program; most dealers who arrange financing treat themselves as covered. Red Flags program.
- Privacy notice (Gramm-Leach-Bliley Act): give it to buyers who finance or lease. GLBA privacy notice.
- OFAC: never sell to someone on the Treasury's sanctions lists; keep records 10 years. Free OFAC search.
- Form 8300: report cash over $10,000 within 15 days. Form 8300 worksheet.
- Credit notices: adverse action within 30 days, and risk-based pricing notices. Adverse action notice.
- Used Car Rule: the Buyers Guide on every used car for sale. Buyers Guide.
- Advertised prices: include doc fees and other required fees, per the FTC's September 2026 FAQs. Ad and price check.
Kentucky's data breach notice law
Kentucky's breach notice law is KRS 365.732. If personal information of Kentucky residents is breached, it says to notify them in the most expedient time possible and without unreasonable delay, following discovery or notification of the breach.
The law has a clause for businesses that follow the breach rules of their own federal regulator (KRS 365.732). Some clauses like this cover only banks and credit unions, so don't count on it: plan to meet the state deadline as well as the FTC's.
The law reads: "The disclosure shall be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement"
This is on top of the federal rule. Under the FTC Safeguards Rule, a dealer must tell the FTC within 30 days of discovering a breach of unencrypted information about 500 or more consumers. How the FTC notice works.
Kentucky's consumer privacy law
Yes. The Kentucky Consumer Data Protection Act (KRS 367.3611 to 367.3629) has applied since January 1, 2026.
Who it covers: Persons that conduct business in Kentucky or target products/services to Kentucky residents and that in a calendar year control or process personal data of at least 100,000 consumers, or 25,000 consumers and derive over 50% of gross revenue from the sale of personal data.
The law exempts both financial institutions subject to the Gramm-Leach-Bliley Act and the data that act covers. A dealer that arranges financing or leases is generally treated as one, so ask your attorney whether that covers your store. (KRS 367.3613(2))
The law reads: "(b) Twenty-five thousand (25,000) consumers and derive over fifty percent (50%) of gross revenue from the sale of personal data."
Whether your store is covered depends on your own numbers, so check them each year, and keep giving financing buyers the federal privacy notice. Make a free GLBA privacy notice.
Kentucky dealer license and bond
A Kentucky retail dealer license calls for a $100,000 surety bond (in cash, inventory or a bond (at least $50,000 of it in cash or inventory)). Everything about the Kentucky dealer license: who needs one, the lot rules and the application.
Kentucky dealer compliance checklist
Write and sign your security plan
Name your Qualified Individual, do the risk assessment and turn on MFA for every system with customer data.
Adopt a Red Flags program
Check the buyer's ID on every deal and log what you checked.
Give the privacy notice
To every buyer who finances or leases, at or before signing.
Check every buyer against the OFAC lists
Keep the dated result in the deal jacket for 10 years.
Track cash
Add up related cash payments and file Form 8300 when they pass $10,000.
Train your staff on security
The Safeguards Rule asks for security awareness training for everyone who handles customer data. Keep a record of who finished it.
Put Kentucky's breach deadline in your incident plan
Notice to residents as the law sets out, and the FTC within 30 days at 500 or more consumers.
Check your ads
Advertised prices include doc fees and every fee all buyers pay.
Rules checked and limits
Rules checked October 31, 2026. We read every rule on this page in the eCFR or on the agency's own site, and each is linked in the sources below. We re-check them every quarter.
Kentucky laws checked October 31, 2026 on the official sources linked below.
Templates and tools, not legal advice. CarShots is software, not a law firm. For a question about your own dealership, ask your attorney or your state dealer association.