How to stop your internet-connected car from selling your driving data

So-called connected cars, vehicles equipped with Internet access, are becoming the norm, and their proliferation is sounding alarm bells for consumer data privacy advocates.

According to Counterpoint Technology Market Research, by 2030, more than 95% of passenger cars sold may be equipped with embedded connectivity features. This enables automakers to provide capabilities related to safety and security, predictive maintenance and forecasting. But it also opens the door for companies to collect, share or sell data about driving habits and other personal information that people may not want to share.

Counterpoint senior analyst Parv Sharma said most automakers offer the option to opt out of unnecessary data sharing, but like many other consumer technologies that make money by selling data, these settings are often hidden in menus. A 2021 McKinsey report predicts that various use cases for monetizing automotive data could generate annual revenue of $250 billion to $400 billion for industry players by 2030.

To be sure, there may be legitimate reasons for collecting driver and car data for safety and functional purposes, while some essential services, such as emergency and safety-related data sharing, may be difficult or impossible to opt out of. Predictive maintenance is one reason for more data sharing, allowing manufacturers to identify parts used in their fleets that are failing earlier than expected, said James Hodgson, research director for smart mobility and automotive at global technology intelligence company ABI. , for recall. Research.

But as privacy issues become increasingly serious Report surge Car companies share driver data with insurance companies, as well as car companies getting into the insurance business themselves. One is that driving habits and car usage details can be reported to data collectors and shared with insurance companies for rate decisions. This is not to be confused with the new usage-based insurance models offered by companies from Progressive to Root, where drivers have the potential to get lower rates if they explicitly allow insurance companies to install devices on their cars that track their behavior.

There are also concerns that sensitive personal information will be shared or sold to advertising companies, or inadvertently used by criminals.

“Car companies collect, share, and sometimes sell more personal and vehicle information than is needed to safely get someone from point A to point B,” said Jen Caltrider, privacy researcher at the Mozilla Foundation. “And it’s getting bigger. Worse.” . September report Mozilla gave 25 major auto brands failing ratings for consumer privacy. The report is titled: “It’s official: Cars are the worst privacy-protecting product category we’ve reviewed.”

Many consumers have no idea how their data is being used, or are unaware that it is being used.salesperson poll A survey of more than 2,000 U.S. vehicle owners and lessors found that few drivers understand what a connected car is and what data is being collected. Industry professionals say that while drivers may be willing to trade their personal data for the benefits of connected cars — such as advanced personalization and cheaper insurance — not knowing how the data is being used could leave consumers vulnerable harm.

For customers looking to enhance the privacy of their driving data, there are no easy answers. An increasingly impractical option is to buy a used car that can’t collect your data.

Another option is to research the automaker’s privacy practices before buying. This information can often be found on the automaker’s website or by searching online using keywords such as company name, privacy and connected cars. For example, several companies say in their privacy policies that they won’t sell customer data, but that doesn’t mean they won’t share it with third parties. What’s more, the definition of a sale can vary slightly, depending on factors such as state privacy laws, Kaltrid said.

What do Ford, Hyundai, Nissan and BMW say?

Before downloading an automaker’s app for your vehicle or signing up for a free trial of its connected service, review your options to opt out. Ford, for example, said it offers customers options regarding data sharing in connected vehicles. Hyundai Motor said owners and lessees can choose whether to join its connected service by accepting the terms and conditions at any time while using the vehicle. Nissan also said it allows consumers to opt out of data collection. BMW said in a September press release that it “allows vehicle drivers to make granular choices regarding the collection and processing of personal information. In addition, we allow customers to delete their data, whether in their apps, in their vehicles or in on-line.”

If you’ve downloaded the app or signed up for connected services, ask your automaker what opt-out options are available. In addition, Cobun Zweifel-Keegan, DC managing director of Privacy International, said that in some states such as California, Colorado and Connecticut, consumers can submit requests to car companies about the personal information collected and how it is shared. . professional. He added that a handful of states allow consumers to opt out of the sale of their personal information, and more are moving in that direction.

Keep in mind what you might be giving up in exchange for better privacy protection. Mo Al-Bodour, consulting manager at SBD Automotive, said there are trade-offs in opting out of data sharing because it often requires deactivating useful or desirable features. These features include navigation, remote unlocking, and the ability to receive service-related updates.

Kaltrid said consumers should make sure to check their privacy settings regularly.

Government looking into car privacy regulations

Various regulatory efforts are underway to understand automakers’ data-sharing practices and control potential privacy violations. The California Privacy Protection Agency’s Enforcement Division announced a review of the connected car industry at the July 2023 board meeting. A spokesman said the review was ongoing but declined to comment further.

The automakers’ data-sharing practices could also be the subject of federal action. Zweifel-Keegan said basic data disclosure practices are not necessarily enough to avoid FTC enforcement.

The issue is attracting wider attention. Sen. Edward J. Markey, D-Mass., a member of the Senate Commerce, Science and Transportation Committee, sent a letter to 14 automakers in December urging them to implement and enforce stronger privacy in their vehicles. Protect.

“Today’s cars are smartphones on wheels,” he wrote in an email. “We cannot let automakers’ desire for profit trump the need to protect consumer privacy, which is why I asked 14 companies to provide answers about their vehicle data practices and privacy protections. Self-regulation has failed. The federal government must protect consumers A leader in the fight for privacy,” Markey said.

“We urgently need a comprehensive federal consumer privacy bill to address this situation and preempt the hodgepodge of state laws,” Eric Goldman, associate dean for research and professor at Santa Clara University School of Law, wrote in an email. . ”

The best-case scenario for automakers and consumers, Hodgson said, may be that the growing concern leads to more car companies using stricter data privacy practices as a marketing tool, similar to how Apple positions itself against its competition Distinguish opponents. That’s not the case now, but at some point manufacturers may compete on the idea that consumers can easily turn off certain data, he said.