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Cars & Consumer Data: On Unlawful Collection & Use

FTC: “Some say the car a person drives can say a lot about them. As cars get “connected,” this turns out to be truer than many people might have realized. While connectivity can let drivers do things like play their favorite internet radio stations or unlock their car with an app, connected cars can also collect a lot of data about people. This data could be sensitive—such as biometric information or location—and its collection, use, and disclosure can threaten consumers’ privacy and financial welfare. Connected cars have been on the FTC’s radar for years. The FTC highlighted concerns related to connected cars as part of an “Internet of Things” workshop held in 2013, followed by a 2015 report. In 2018, the FTC hosted a connected cars workshop highlighting issues ranging from unexpected secondary uses of data to security risks. The agency has also published guidance to consumers reminding them to wipe the data on their cars before selling them—much as anyone would when trying to resell a computer or smart phone. Over the years, privacy advocates have raised concerns about the vast amount of data that could be collected from cars, such as biometric, telematic, geolocation, video, and other personal information. News reports have also suggested that data from connected cars could be used to stalk people or affect their insurance rates. Many have noted that when any company collects a large amount of sensitive data, it can pose national security issues if that data is shared with foreign actors. Car manufacturers—and all businesses—should take note that the FTC will take action to protect consumers against the illegal collection, use, and disclosure of their personal data. Recent enforcement actions illustrate this point…”

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