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139 Banking L.J. 462 (2022)
New Federal Trade Commission's Safeguards Rule Is a Game-Changer for Extended Warranty and GAP Waiver Industries

handle is hein.journals/blj139 and id is 494 raw text is: New Federal Trade Commission's Safeguards Rule Is a Game-Changer for Extended Warranty and GAP Waiver Industries By Brian T Casey, Theodore R Augustinos and Alexander R. Cox` This article reviews the applicability of the Federal Trade Commission's (FTC's) Safeguards Rule to providers and sellers of extended warranties and GAP waivers in the context of the background of the privacy and security rules for financial institutions, and the scope of the FTC's authority. The Federal Trade Commission (FTC) has recently supercharged the Gramm-Leach-Bliley Act's Safeguards Rule for financial institutions under its jurisdiction. The Safeguards Rule imposes data security standards for consumer nonpublic person information obtained and created by financial institutions subject to the FTC's Gramm-Leach-Bliley Act jurisdiction. The FTC finalized its proposed update to the Safeguards Rule on October 28, 2021, which was originally published for rule-making' in March 2019 and then further developed during an FTC workshop2 in July 2020. After a lengthy gestation period, the new revised rule3 became effective January 10, 2022, and requires compliance by December 9, 2022. FTC SAFEGUARDS RULE The new FTC Safeguards Rule embraces many of the core concepts of the New York Department of Financial Services Cybersecuriry Regulation (the NYDFS Cybersecurity Regulation)4 and the National Association of Insur- * Brian T. Casey (bcasey@lockelord.com) is a partner at Locke Lord LLP and co-leader of the firm's Regulatory and Transactional Insurance Practice Group, and a member of the firm's Corporate, Capital Markets and Health Care Practice Groups. Theodore P. Augustinos (ted.augustinos@lockelord.com) is a partner at the firm and member of the Steering Committee of the firm's Privacy and Cybersecurity Practice Group, leading the group's initiatives focused on the California Consumer Privacy Act and the California Privacy Rights Act, and New York DFS Cybersecurity Regulation, and its Incident Response Team. Alexander R. Cox (alex.cox@lockelord.com) is an associate at the firm advising clients in various industries on privacy and cybersecurity issues. 1 https://www.ftc.gov/news-events/press-releases/2019/03/ftc-seeks-comment-proposed- amendments-safeguards-privacy-rules. 2 https://www.ftc.gov/news-events/events-calendar/information-security-financial-institutions- ftc-workshop-examine. 3 https://www.federalregister.gov/documents/2021/12/09/2021-25736/standards-for-safeguarding- customer-information. 4 23 NYCRR Part 500. 462