Data Ownership and the Automotive Recycler
The Automotive Recyclers Association has always believed that auto recycler data is one of the most important assets of any recycler and recyclers should be diligent in protecting their rights with respect to their data. Recent controversies have again highlighted the importance of constant diligence. ARA leadership is aware of ongoing trends with respect to the use, access and rights associated with recyclers’ data and has consistently tried to inform its members of the importance of understanding how their data is being used and accessed. Accordingly, ARA wishes to reiterate some key principles auto recyclers should keep in mind when entering into any agreement or a service with any entity seeking access, use or other rights with respect to a recycler’s data:
• Recycler data belongs to the recyclers and is a valuable asset.
• Before entering into any contract or using a service that accesses or uses recycler data, recyclers should understand how their data will be used and shared.
• Recyclers should consider whether access to their data could be used against them or put them at a competitive disadvantage.
• Recyclers should determine whether their data and the use of their data will be monetized. If so, recyclers should consider being able to share in that monetization.
• Recyclers should consider amending current service agreements or contracts to include specific provisions protecting the ownership of their data and limiting the use of the data only for the specific purpose of the contract.
Although each recycler should seek their own legal advice and tailor any agreement to their own circumstances, the following is an example of the type of language that could provide some protection:
“Client’s data, transferred from or accessed through third party software will remain the property of the Client. We acknowledge that the Client’s data is confidential, sensitive, and of crucial competitive importance, and will only be accessed and used for the sole stated purpose of this product. We agree not to allow or permit Client’s data to be accessed, sold, aggregated, analyzed or used by or to any third party for any reason without the expressed knowledge and written permission of the Client.”
• Recyclers should seek legal and/or technical advice when being asked to share, sell, or provide access to their data. When presented with an agreement granting broad access or rights to recycler data, recyclers should not be hesitant to ask for amendments protecting their data and/or limiting the use of such data.
• In general, having a contract is better than not having a contract but a bad contract can be almost as bad. Accordingly, recyclers should ensure that there is some written agreement in place governing the use of their data, taking into consideration the items above and their own circumstances.
Ultimately, how each recycler decides to use, provide access to or sell its data is an independent business decision but those should be informed decisions made by taking into consideration the concepts above.
CONGRATULATIONS AWARD RECIPIENTS!
LIFETIME ACHIEVEMENT AWARD
John A. Daurio, Sr.
LIFETIME ACHIEVEMENT AWARD
STAR AWARD WINNERS:
FORS – Vehicle Recycling Forum, Poland
Member of the Year
Certification Member of the Year
Yancey Auto Parts
And the Winner of the Automotive Recycling Training Institute (ARTI) 50/50 Drawing Is …
Frank Walls, of Frankie’s Used
Auto Parts, Gettysburg, PA
New Seller Vetting Process for Airbag Sellers
The eBay Motors platform now requires all sellers of airbags to be an ARA Certified Auto Recycler (CAR) with a Recall Procedure in place. An ARA CAR or Gold Seal certified facility does not sell Recycled Original Equipment (ROE) auto parts that have safety recalls issued by an Original Equipment Manufacturer (OEM) for re-use or repair of another vehicle. Safety parts known to have recalls, such as airbags, are also VIN checked for recall at point-of-sale. Refer to ARA Certification standards for Recalls at https://aracertification.com/recalls to establish a recall policy at your facility. Purchase and complete your CAR Record today!
WELCOME NEW AND RETURNING MEMBERS
A Solutions Auto Parts
AH Parts Dismantlers
Auto & Equipment Specialist Auto Sales LLC (AES Corvette Parts)
Auto Hub Shop
Auto Japan, LLC
AZ Cycle Parts LLC
B & B Used Auto Parts
Benchmark Auto Corp
Big Sam Auto Parts, Inc.
Cordova Auto Parts, Inc.
Direct Auto Remarketing, LLC
Discount Auto Used Parts
Dynamic Auto Parts
Eagle Auto Parts, Inc.
Earl and Son LLC
dba Lansdowne Motorsport
Edge Processes, Inc.
Expert Auto Wrecking
Expressive Auto Parts LLC
Green Light Used Auto Parts, Inc.
H&M Auto Parts
J & V Auto Parts
Land Auto Dismantling Inc.
LeeC Parts, Inc.
Mega Auto Care &
Midwest Auto Parts Store, LLC
Mike’s Foreign Auto Parts
Mullins Auto Parts
Nelivan Investments LLC
dba Nelivan Auto
Newark Motor & Export
Novak Enterprises Inc
dba Norb’s Salvage
Parts Box Inc. – Belton
Parts Box Inc. – Englewood
Parts Box Inc. – Venice
Prestige Auto Parts
Pride Auto Wrecking
Royal Used Auto Parts
Spartan Auto Parts
Straight Six Auto Parts
The Parts Farm
The Parts Pros
US Auto – Sterling Heights, Inc.
US Auto – Wayne
Viking Used Auto Parts
What a Great Event!
By Sandy Blalock, ARA Executive Director
ARA was excited to welcome an overwhelming number of automotive recyclers and industry suppliers from around the world to the beautiful Walt Disney World Dolphin Resort on September 22-24th. So much is happening simultaneously to impact the way professional automotive recyclers do business and our theme this year spoke to that – Agents of Change. It is vital that the industry comes together to share knowledge, make valuable contacts, and discuss strategies that will help us all pursue excellence.
With more of the sessions geared towards recycler-to-recycler information sharing, ARA focused on the topics that you and your employees need to know. We had two recycler keynote sessions this year – Ryan Falco, Pat & Mike from Pam’s – and three self-service panel discussions. Session topics included the advantages of being an independent, brand marketing, creating a culture of accountability, building better trading groups, safety compliance, challenging sales in a bull market, and more!
Do not miss next year’s event! Mark Your CALENDARS for ARA’s 80th
Anniversary Convention and Expo in Kansas City, MO – October 12-14th.
Solving the Supply Issue
By Steve Fletcher, Managing Director of the Automotive Recyclers of Canada and the Executive Director of the Ontario Automotive Recyclers Association.
Recyclers have a unique opportunity to help collision repairers and insurers dealing with serious parts shortages. It used to be that insurers traditionally wanted recycled OEM parts, while collision repairers felt the profits they could make on these parts was minimal. Today’s shops however, have had to adjust their viewpoint, due to growing pressures to source only those parts needed for repairs while also keeping the length-of-rental (LOR) and severity down. What changed is that the cost of insurance rentals has increased from six to sixteen days. Because of the delay in receiving parts from overseas shippers, plus the cost of shipping itself has doubled and in some instances quadrupled, these salvage parts are a practical option for insurers and help keep the LOR costs down.
All of this has led to greater online awareness as Google and Facebook ad campaigns drive more business to the automotive recycling members, to the tune of website increases up to 300 percent. That’s great business for us, so take advantage of this while it lasts. Talk with your association and fellow recyclers to learn how they are capitalizing on OEM and aftermarket parts shortages. Supply chains will normalize soon enough, but this is a great time to build relationships, establish business credibility and ultimately steer you onto a path of longer-term, sustainable success.