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Maryland dealer compliance

Maryland dealer compliance checklist

What a Maryland car dealer needs to stay compliant: the federal rules every dealer follows, Maryland's data breach notice law, its consumer privacy law status and the dealer bond, with the official source for each.

At a glance

Breach notice to residents
45 days at most
State regulator notice
Office of the Attorney General
State consumer privacy law
Maryland Online Data Privacy Act of 2024
Dealer bond
$15,000
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.

Maryland's data breach notice law

Maryland's breach notice law is Md. Code, Com. Law § 14-3504. If personal information of Maryland residents is breached, it says to notify them as soon as reasonably practicable, but not later than 45 days after the business discovers or is notified of the breach.

Who else to tell: the Office of the Attorney General. Prior to giving notice to affected individuals (any breach requiring individual notice).

The law has a clause for businesses that follow the breach rules of their own federal regulator (Md. Code, Com. Law § 14-3507(b),). 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 notification required under paragraph (2) of this subsection shall be given as soon as reasonably practicable, but not later than 45 days after the business discovers or is notified of the breach of the security of a system."

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.

Maryland's consumer privacy law

Yes. The Maryland Online Data Privacy Act of 2024 (Md. Code, Com. Law § 14-4701 et seq.) has applied since October 1, 2025.

Who it covers: Persons that conduct business in Maryland or target products/services to Maryland residents and that in the preceding calendar year controlled or processed personal data of at least 35,000 consumers (excluding data processed solely to complete a payment transaction), or at least 10,000 consumers and derived more than 20% 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. (Md. Code, Com. Law § 14-4703(a))

The law reads: "Controlled or processed the personal data of at least 35,000 consumers, excluding personal data controlled or processed solely for the purpose of completing a payment transaction"

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.

Maryland dealer license and bond

A Maryland retail dealer license calls for a $15,000 surety bond; other amounts apply to some license types or sales volumes. Everything about the Maryland dealer license: who needs one, the lot rules and the application.

Maryland dealer compliance checklist

  1. Write and sign your security plan

    Name your Qualified Individual, do the risk assessment and turn on MFA for every system with customer data.

  2. Adopt a Red Flags program

    Check the buyer's ID on every deal and log what you checked.

  3. Give the privacy notice

    To every buyer who finances or leases, at or before signing.

  4. Check every buyer against the OFAC lists

    Keep the dated result in the deal jacket for 10 years.

  5. Track cash

    Add up related cash payments and file Form 8300 when they pass $10,000.

  6. 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.

  7. Put Maryland's breach deadline in your incident plan

    45 days for residents, plus the Office of the Attorney General, and the FTC within 30 days at 500 or more consumers.

  8. 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.

Maryland 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.

Common questions

How fast must a Maryland car dealer report a data breach?

Maryland's law (Md. Code, Com. Law § 14-3504) says to notify affected residents as soon as reasonably practicable, but not later than 45 days after the business discovers or is notified of the breach. Also tell the Office of the Attorney General. Prior to giving notice to affected individuals (any breach requiring individual notice). Separately, the FTC Safeguards Rule asks for an FTC notice within 30 days when 500 or more consumers are affected.

Does Maryland have a privacy law that applies to car dealers?

Maryland has the Maryland Online Data Privacy Act of 2024. It covers: persons that conduct business in Maryland or target products/services to Maryland residents and that in the preceding calendar year controlled or processed personal data of at least 35,000 consumers (excluding data processed solely to complete a payment transaction), or at least 10,000 consumers and derived more than 20% of gross revenue from the sale of personal data. Whether a store is covered depends on its own numbers. The federal GLBA privacy notice applies either way.

What federal compliance rules apply to Maryland car dealers?

The FTC Safeguards Rule, the Red Flags Rule, the GLBA privacy notice, OFAC sanctions checks, Form 8300 for cash over $10,000, adverse action and risk-based pricing notices, the Used Car Rule's Buyers Guide, and the FTC's pricing rules for ads.

How much is the Maryland dealer bond?

$15,000 for a retail dealer license, with other amounts for some license types or sales volumes. See the Maryland dealer license guide.

Get your Maryland compliance program in ten minutes

Answer about ten minutes of questions. Get your score, your gap list and a watermarked draft of your security plan, free with no card. Essentials is $99 per store a month when you're ready.