Recent Developments in Connected Vehicle Data and Privacy Regulations

The Federal Trade Commission (FTC) has issued a statement expressing concerns about the over-collection and potential misuse of sensitive data from connected vehicles. The recent blog post emphasizes the risks associated with gathering precise geolocation and biometric information without proper consent. The FTC has also taken enforcement actions to protect consumers from illegal data collection, use, and disclosure.

In a recent class action lawsuit, plaintiff Romeo Chicco alleges that General Motors (GM) and OnStar shared his driving data without his knowledge or consent, leading to significant impacts on his ability to obtain car insurance. Mr. Chicco claims his insurance rates nearly doubled based on information collected through OnStar’s Smart Driver Program and shared with LexisNexis. The complaint highlights a lack of transparency in how driver behavior data is collected and shared, raising concerns about privacy violations and deceptive trade practices.

The case underscores the evolving landscape of vehicle data collection and sharing, particularly in the realm of usage-based insurance programs. While these programs have been around since the late 1990s, advancements in telematics data and vehicle technology have led to the collection of more sensitive and personally identifiable information. Dealerships are urged to re-examine their data sharing practices to ensure transparency and compliance with privacy laws.

Recent state laws in New Jersey, Tennessee, New York, and California have addressed vehicle data privacy issues, requiring manufacturers and dealers to provide more transparency to customers regarding data sharing practices. The regulatory landscape for connected vehicle data is rapidly changing, prompting companies to limit the collection and use of personal data to what is necessary for providing products or services.

Overall, the FTC’s statements and the ongoing class action lawsuit highlight the importance of protecting consumer data privacy in the age of connected vehicles. Manufacturers, dealers, and insurance companies must navigate the complex regulatory environment to ensure compliance and safeguard consumer information.