Attorney General Mark Brnovich’s Office Obtains Victory in Defense of Arizona’s Data Protection Law for Automotive Dealers

PHOENIX – Attorney General Mark Brnovich announced that his office (AGO) obtained a complete victory in defense of Arizona’s consumer protection law that protects data obtained and maintained by car dealerships (dealer law).

The Arizona law protects consumers by putting control of consumer data in the hands of car dealerships, which are required under federal law to protect that data, rather than software companies.  It also allows dealerships to use third-party integrators to assist them with tasks like inventory management and customer relationship management.  This promotes a strong marketplace for smaller software providers.

"This is a big win for Arizonans and the protection of their personal information," said Arizona Attorney General Mark Brnovich. "I am proud of our team for successfully defending Arizona's law that promotes a robust marketplace for consumers."

Two software manufacturers (CDK and Reynolds and Reynolds) had challenged this law as violating several federal statutes and constitutional provisions.  The federal district court in Arizona had ruled against the software manufacturers, and the Ninth Circuit Court affirmed the ruling in a published opinion.

After the Ninth Circuit’s ruling, CDK voluntarily dismissed its case with prejudice. On Tuesday, Reynolds and Reynolds also voluntarily dismissed its case with prejudice, resulting in a complete victory for the AGO.

The Arizona Legislature unanimously passed this law in 2019 and made Arizona one of the first states in the nation to have such a law.  Other states have since followed suit, including Montana and Oregon.