HMA’s New Data Sharing Agreement: Worse Than Before

By Andrew G. Thomas & Nicholas A. Bader

Hyundai dealers recently received a new Hyundai-Dealer Information Sharing Agreement (the “DISA”) covering the exchange of certain information between Hyundai and its dealers. While this was a new version of the DISA, it is not Hyundai’s first iteration of a data sharing agreement—indeed, like most OEMs Hyundai has been gradually altering and updating these agreements periodically over the recent years. Now, after pushback from dealer and dealer advocates, Hyundai has indicated it is further revising the DISA, and we are waiting to review that version.

Data sharing agreements are a somewhat recent phenomenon in the automotive industry. As digital sales and marketing has become more prevalent in automotive retail, manufacturers have been setting the ground rules for how they will require the collection of data and flow of information to be handled. These sharing agreements, and the data they govern, touch a number of facets of dealers’ business.  In the digital sales world, data is king as it can be used to analyze sales metrics, predict customer behavior, modify the sales process, drive foot traffic, increase advertising and marketing efficiency, manage leads, and more. 

But how was the revised DISA different from prior versions of Hyundai’s data sharing agreements? While the nature of the agreement is similar to prior versions, the DISA being circulated to dealers now includes several changes which are either only beneficial to Hyundai, or come at the dealer’s expense. What we don’t know is how the further revised version will differ. For Hyundai dealers that have executed a previous version of the information sharing agreement, it is critical to know what the differences are as the new DISA would supersede any prior version. For Hyundai dealers that have not signed any prior version of the DISA, we strongly believe that the revised DISA be analyzed fully once it becomes available so that there is a complete understanding as to what is required under the DISA, and what the impacts of signing it may be. 

An important aspect of Hyundai’s DISAs, and many other such agreements, is the use of scope documents used to identify the data that can be accessed and the parameters for use of the obtained data. Scope documents are incredibly important, and each new or amended scope document should be closely scrutinized by dealers. 

Dealers should also be aware of how their state’s motor vehicle franchise laws impact data sharing agreements.

We stand ready to work with dealers once Hyundai releases its further revised DISA.

If you have any questions relating to the DISA, or any other OEM information sharing agreement, you should contact an experienced dealer attorney.