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Some drivers and employees may be surprised to find out what’s hidden in 9,500 words Privacy statement Nissan North America outlines all personal data the car company may collect. These categories extend to “race, national origin, religious or philosophical beliefs, sexual orientation, sexual activity, precise geographic location, health diagnostic data and genetic information.”
Nissan said it may also make inferences about psychological trends, behavior, attitudes and intelligence. It may share anonymous data with unspecified third-party service providers and use it for their own marketing and operational purposes.
Today, car companies brag that they are as much into software as hardware, building “computers on wheels” outfitted with cameras, microphones and sensors. The software can run useful services such as route mapping, cruise control and the ability to play “Mustang Sally” while speeding on the highway.but a report A report released this week by the Mozilla Foundation on the privacy policies of 25 car brands found that the industry also engages in widespread sideline sales of data. “Modern cars are privacy nightmares,” the report concluded.
From privacy statements that are never read, to data-sharing practices that are never explained, to piecemeal regulations that are rarely enforced, our data economy is a mess. We don’t expect to read the water company’s terms and conditions before turning on the tap. Why is it different from the data? We can and must clean up the digital economy. Some clever ideas are emerging on how to do this.
Mozilla’s report exposes many flaws in the data economy that extend far beyond the automotive industry. A core principle promoted by regulators and industry associations is that companies should collect only the minimum data necessary to run their services. All 25 car brands failed in this regard. Nineteen stipulate that they may sell data to third parties. Most said they would also share the data with government or law enforcement agencies “upon request.”
Worse, most car companies only offer the illusion of user consent. Mozilla issued the most privacy warnings to Tesla, which told owners they could contact the company to stop it from collecting data. But helpfully adds: “This could result in your vehicle having reduced functionality, severe damage or being inoperable.” The industry’s poor record on cybersecurity has heightened concerns.
In his latest book, Cory Doctorow makes a powerful argument for taking back the “means of computing” internet scam. His top-down solution to encourage real consumer choice and increase competition is to mandate interoperability between technology platforms, as stipulated in the EU Digital Markets Act.
For example, if a Facebook user moves to another social network, they will face painful switching costs because they will lose all access to their community and content. But in a fully interoperable world, users could easily transfer their “social graph” (their network of relationships) to another service of their choice.
This may coincide with attempts to build a more secure internet infrastructure from the bottom up. One interesting endeavor is the Freedom Project, a $100 million non-profit initiative backed by philanthropist Frank McCourt, which publishes an open source protocol that allows developers to build privacy-preserving applications and services. “Being able to access and control your own data is at the heart of the problem and at the heart of our solution,” said Martina Larkin, CEO of Project Liberty.
Trying to redesign an industry dominated by some of the richest and most powerful companies in history is an almost insurmountable challenge. Few believe that much will change unless public mentality changes dramatically and more big tech companies join in supporting U.S. federal privacy laws.
But Larkin said we could reach a tipping point if we see 65 elections held next year being rigged on a massive scale. In total, about 4 billion people are eligible to participate in the polls, including in India, the United States, Indonesia, Mexico and the United Kingdom, and there are concerns that generative AI could use personal voter data to weaponize disinformation campaigns. “AI is accelerating everything, including the need for solutions,” Larkin told me.
In the meantime, we should all read these hellish terms and conditions, denounce car companies (and others) for their horrific privacy standards, support more secure data plans, and urge our lawmakers to promote competition.
john.thornhill@ft.com
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