Smart Cars Share Driver Data, Prompting Calls for Federal Scrutiny

Smart Cars Share Driver Data, Prompting Calls for Federal Scrutiny

July 31, 2024 at 03:09PM

Two US senators have urged the US Federal Trade Commission to investigate automakers’ sharing of driver data without consent, citing issues with data privacy and deceptive terms of service in smart cars. The letter emphasizes the potential security risks of connected vehicles and the lack of comprehensive data privacy regulations in the US.

The meeting notes highlighted the concerns raised by US senators regarding the data privacy challenges and deceptive practices associated with modern smart cars. The senators urged the US Federal Trade Commission (FTC) to investigate automakers, including General Motors, Honda, and Hyundai, for sharing driver data without obtaining informed consent and using deceptive language in their terms of service. The senators emphasized the need for accountability, including holding senior company officials responsible for the abuse of customers’ privacy.

Furthermore, the notes indicated that modern vehicles collect a significant amount of personal and identifying information, making both drivers and their vehicles vulnerable to cyberattacks. The lack of comprehensive data privacy regulations in the US was also discussed, with references to the absence of a general data privacy regulation comparable to the EU’s GDPR and the patchwork of inconsistent rules at the state level.

Additionally, the meeting notes included insights from experts calling for measures such as requiring informed consent for data sharing, separating consent for different purposes, and implementing laws that prevent companies from limiting functionality based on consent. It was noted that while the FTC may have limitations in driving significant change, stricter EU regulations and consumer voices could play crucial roles in influencing the industry.

Overall, the meeting notes underscored the urgency of addressing privacy and security issues in connected vehicles and the necessity for clear and comprehensive regulations to protect consumer privacy.

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