Often without any warning, independent automotive dealers in Florida face escalating data privacy litigation risks tied to their websites. As online presence grows essential for lead generation, inventory browsing, chat features, and financing applications, many dealers unwittingly expose themselves to nuisance and class action lawsuits through common digital tools like tracking pixels, cookies, session replay software, online chat, email tools, and third-party scripts.
Florida’s legal landscape amplifies these threats. The state’s Security of Communications Act (FSCA) and wiretapping statutes have fueled a surge in “digital wiretapping” claims. Plaintiffs argue that technologies intercepting or recording electronic communications—such as chat interactions or page views, without explicit consent, violate privacy laws and file dozens of cases a month. Recent cases target consumer-facing websites using Meta Pixels (formerly Facebook Pixel) or similar tools that share user data with platforms like Meta or Google Analytics. While initial waves hit healthcare portals, the scope now includes retail and automotive sites, with Florida emerging as a hotspot for such filings. Even email newsletters are generating demand letters!
For independent dealers, risks often stem from vendor-provided website platforms or marketing tools. Features like live chat modules, embedded videos, or ad retargeting can deploy tracking without proper disclosures or opt-in consent. A California law firm has pursued out-of-state dealers under similar statutes for alleged unauthorized recording and sharing of communications. Though Florida lacks a comprehensive state privacy law like California’s CCPA, federal angles (e.g., Video Privacy Protection Act analogs) and FTC enforcement for deceptive practices fill gaps. Violations can trigger class actions seeking statutory damages, attorney fees, and injunctive relief.
Automotive-specific concerns compound issues. Dealers collect sensitive data, names, contact info, credit applications, and browsing behavior, often shared with lenders or ad networks. Poorly configured sites may transmit this to third parties without notice, inviting claims of unfair/deceptive acts under FTC guidelines or state consumer protection laws. Recent automotive privacy suits (e.g., against major OEMs for vehicle data sharing) signal broader scrutiny, though website-focused litigation remains the immediate threat for independents.
To mitigate risks, dealers should conduct privacy audits of their sites. Key steps include:
- Reviewing third-party scripts and pixels for data flows.
- Implementing clear and prominent privacy policies with detailed disclosures.
- Adding cookie consent banners compliant with evolving standards.
- Ensuring chat/session tools obtain affirmative consent where required.
- Training staff and vetting vendors for privacy safeguards.
- Consulting counsel experienced in data privacy for compliance reviews.
Proactive measures not only reduce litigation exposure but build consumer trust in an era of heightened privacy awareness. Independent dealers, lacking corporate resources, must prioritize these defenses to avoid costly settlements or reputational harm. As digital tracking evolves, staying ahead of regulatory and plaintiff trends is no longer optional, it’s essential for survival in Florida’s competitive market.
Contact me directly at tshields@kelleykronenberg.com to discuss your compliance strategy or defense against pending claims.
About the Author:
Timothy Shields
Partner/Business Unit Leader, Data Privacy & Technology
Kelley Kronenberg-Fort Lauderdale, FL.
(954) 370-9970
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