Automotive Data Collection Outpaces Privacy Protections

The automotive industry is facing increasing scrutiny over the collection and monetization of consumer data, often occurring without clear driver consent. As first reported by The Verge, the Federal Trade Commission recently penalized General Motors with a five-year ban on selling customer data to third-party data brokers and consumer reporting agencies. GM had been collecting driver behavior data—including night driving and speeding habits—via the Smart Driver feature in OnStar connected services plans and sharing it with data brokers LexisNexis and Verisk for insurance risk profiling.

Investigations by The New York Times indicated that some drivers saw insurance rate increases due to this data sharing, while the enrollment process remained confusing. This is not an isolated case; Consumer Reports found that nearly every automaker selling vehicles in the U.S. collects and shares driver behavior data. Furthermore, a 2023 study by the Mozilla Foundation, co-authored by Jen Caltrider, concluded that every major car company exhibited "horrible privacy and security," forcing customers to navigate overlapping policies across vehicle hardware, smartphone apps, and financial services.

Legislative attempts to address the vacuum are underway, though critics argue they fall short. The DRIVER Act, introduced by three House Republicans, suggests that vehicle owners should own the data their cars generate; however, the bill would still allow automakers to gather and sell data to brokers. Additionally, Transportation Secretary Sean Duffy proposed the "Freedom Car" concept, which would prohibit the government from requiring wireless data transmission or automated driving systems in vehicles.