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Wednesday, 12 January 2022 22:16

Arizona Attorney General Gets Court Win in Challenge to Consumer Protection Law

Written by Elizabeth Troutman, The Center Square
Arizona Attorney General Gets Court Win in Challenge to Consumer Protection Law Shutterstock

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Arizona law will continue to contain a data protection provision for car dealerships after Attorney General Mark Brnovich’s victory from the Ninth Circuit Court.

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

 

Passed by the Arizona legislature in 2020, the law upheld by the court Dec. 28 protects consumers by allowing car dealerships, which are required by law to protect consumer data, to control it, rather than software companies. It also allows dealerships to use third-party integrators to help with inventory and customer relationship management, the news release said.

 

Brnovich’s office said the law promotes a strong marketplace for smaller software providers.

 

Two software manufacturers, CDK and Reynolds and Reynolds, challenged the dealer law, saying it violated several federal statutes and constitutional provisions. Arizona’s federal district court ruled against the software manufacturers and the Ninth Circuit Court affirmed the ruling in their published opinion.

 

Following the Ninth Circuit’s ruling, both manufacturers dismissed their cases with prejudice, resulting in the AGO’s victory.

 

We thank The Center Square for reprint permission.

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