Senate SB604 mandates data security compliance for dealer management systems

Oklahoma's Senate Bill 604, introduced on March 11, 2025, aims to enhance data security and access rights for automobile dealers and authorized integrators in the state. The bill seeks to address growing concerns over the management and protection of sensitive dealer data within dealer management systems.

Key provisions of SB 604 include stipulations that allow dealer management system providers to condition access to dealer data on compliance with commercially reasonable data security standards. Additionally, the bill mandates that authorized integrators must obtain express written authorization from dealers before accessing or transmitting protected data. Notably, it also permits management system providers to deny access to dealers who fail to meet financial obligations under existing agreements.

The legislation has sparked significant debate among stakeholders. Proponents argue that the bill is essential for safeguarding dealer data against unauthorized access and ensuring that integrators operate transparently. Critics, however, express concerns that the bill may inadvertently empower management system providers to impose excessive restrictions on dealers, potentially stifling competition and innovation in the automotive sector.

The implications of SB 604 extend beyond data security. Economically, the bill could reshape the relationship between dealers and management system providers, influencing how data is shared and utilized in the industry. Socially, it raises questions about privacy and the rights of dealers to control their own data, which could impact consumer trust in the automotive market.

As the bill progresses through the legislative process, its outcomes will be closely monitored by industry experts and stakeholders. The potential for amendments and further debates suggests that the final version of SB 604 may evolve significantly before it is enacted, making it a pivotal piece of legislation for Oklahoma's automotive industry.