[Glossary](https://telxpress.com/glossary/) / Security & compliance # FTC Safeguards Rule The **FTC Safeguards Rule** requires non-bank financial institutions, including car dealerships that arrange financing, to keep a written information security program with named elements such as risk assessments, access controls, encryption and multi-factor authentication. - Security & compliance - Updated October 11, 2026 - Written by the Telxpress advisory team 01 In depth ## What it is, why it matters and *what to ask a vendor* The Safeguards Rule (16 CFR Part 314) implements part of the Gramm-Leach-Bliley Act for businesses the FTC regulates: auto dealers, mortgage brokers, tax preparers and others that handle customer financial information. It requires a qualified individual to run the program, a written risk assessment, safeguards such as encryption and MFA, vendor oversight, an incident response plan and reporting to leadership. Dealerships feel this most. The customer data in the finance office, the CRM and the phone recordings all fall under the program, and so do the vendors who touch them. A growing dealer group adding an AI voice agent or a new phone system is adding a service provider the rule says must be assessed and monitored. Ask a vendor to describe their own security controls in the rule's terms: encryption at rest and in transit, MFA for every login, access logs, and how they support your risk assessment. Ask for a written agreement covering safeguards. Confirm the program itself with your compliance counsel. 02 Related terms ## Terms that usually come up *alongside it* - Security & compliance ### [GLBA](https://telxpress.com/glossary/glba/) GLBA (the Gramm-Leach-Bliley Act) is the federal law requiring financial institutions to explain how they share customers' nonpublic personal information and to protect that information with a security program. - Security & compliance ### [MFA (multi-factor authentication)](https://telxpress.com/glossary/mfa/) Multi-factor authentication (MFA) requires a second proof of identity beyond a password, such as a code from an app or a hardware key, and it defeats most attacks that rely on stolen passwords. - Network ### [Firewall](https://telxpress.com/glossary/firewall/) A firewall is the security device or service that inspects traffic entering, leaving and crossing your network and allows or blocks it by rule, protecting your systems from the internet and from each other. - AI ### [AI governance policy](https://telxpress.com/glossary/ai-governance-policy/) An AI governance policy is the written set of rules a business adopts for how AI tools may be used, what data they may touch, who approves them and how their output is checked. 03 At Telxpress ## Where this shows up *at Telxpress* The pages and articles where this term does real work: what we advise, build and support. - Industry ### [AI Voice Agents & Technology for Car Dealerships](https://telxpress.com/industries/automotive-dealerships/) Capture every sales and service call with an AI voice agent, meet FTC Safeguards Rule and TCPA duties, and modernize the dealership network. - Page ### [Business Networking, Firewalls & Managed Wi-Fi](https://telxpress.com/solutions/business-technology/networking/) Switching, routing, Fortinet firewalls, Ubiquiti and Cisco Meraki Wi-Fi and managed network services for offices that depend on reliable connections. - Page ### [Donya AI Voice Agent: Never Miss a Call](https://telxpress.com/solutions/ai/voice-agent/) Donya answers every call 24/7, qualifies leads and books appointments. Call the demo line to hear it. Built and run by Telxpress. 04 Sources ## Public *references* The standard or law this definition rests on, as published by its owner. Fetched and checked on the review date above. - [FTC: Safeguards Rule, what your business needs to know](https://www.ftc.gov/business-guidance/resources/ftc-safeguards-rule-what-your-business-needs-know) ftc.gov - [16 CFR Part 314, Standards for Safeguarding Customer Information (Cornell LII)](https://www.law.cornell.edu/cfr/text/16/part-314) law.cornell.edu Next step ## Want This Applied *to Your Business?* Book a free 30-minute AI readiness consultation. You'll leave with three AI opportunities specific to your business, whether you work with us or not. [Book My Free Consultation](https://telxpress.com/book/) [Take the Free AI Readiness Assessment](https://telxpress.com/ai-readiness/) [Or call 24/7: (949) 861-4500](tel:+19498614500) Last reviewed: October 11, 2026. Published by Telxpress, Irvine, CA.