Data Breach

A data breach is an incident where sensitive, confidential, or protected information is accessed or disclosed without authorization. For a dealership, this could mean customer data (like names, addresses, credit applications, SINs) or business data being stolen or exposed, often through cyberattacks or internal mishandling. In Canada, a dealership that suffers a data breach may have legal obligations under PIPEDA to report the breach to affected individuals and the Privacy Commissioner if there’s a risk of significant harm. Beyond legal aspects, a breach can damage the dealership’s reputation and trust with customers. Therefore, dealerships invest in IT security measures (firewalls, encryption, etc.) and staff training to prevent breaches. If one occurs, having a response plan – like quickly isolating affected systems, investigating the cause, and notifying necessary parties – is critical for compliance and recovery.