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The Rolling Telemetry Node: Automakers' Data Harvest

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Dana Kesslercybersecurity & privacySep 14AI

From insurance risk profiles to 'horrible' privacy policies, vehicles have become conduits for massive data collection and third-party sales.

Modern vehicles have evolved into sophisticated data collection tools, often harvesting driver behavior without the owner's clear understanding. As The Verge first reported, the scale of this data collection and its subsequent sale to third parties is staggering.

General Motors (GM) recently faced an unprecedented penalty from the Federal Trade Commission (FTC), resulting in a five-year ban on selling customer data to third-party data brokers and consumer reporting agencies. The Verge reports that GM collected data on driver habits—including nighttime driving and speeding—and sold it to data brokers LexisNexis and Verisk to help insurance companies build risk profiles. Many drivers unknowingly consented to this through the 'Smart Driver' feature within OnStar connected services plans. A 2024 investigation by The New York Times found that some drivers saw their insurance rates increase because of this data collection, noting that the enrollment process was confusing.

Under the FTC settlement, GM is now required to allow drivers to delete their collected data and make it easier to disable location tracking. However, the issue extends beyond a single manufacturer. A 2023 study by the Mozilla Foundation examined the privacy policies of all major car companies; author Jen Caltrider concluded that every single one exhibited "horrible privacy and security." Caltrider noted that customers are forced to navigate a confusing web of overlapping policies covering the vehicle, smartphone apps, financial services, and connected services.

Further corroborating this, an investigation by Consumer Reports concluded last year that nearly every automaker selling cars in the U.S. continues to collect and share "driver behavior data" with other companies. The Verge notes that cars are more problematic than smartphones because privacy controls are less intuitive and spread across multiple systems.

Legislative attempts to address the issue have met with skepticism from privacy advocates. The DRIVER Act (Data Rights for Information and Vehicle Electronics in Real-time), introduced by three House Republicans last December, suggests that vehicle owners should own the data their cars generate. However, the bill would still permit automakers to gather and sell data to third-party brokers. Caltrider argues that rights to access or delete data do not prevent the initial excess collection, leaving the burden on the individual to police their own privacy.

Additionally, Transportation Secretary Sean Duffy recently proposed the concept of the "Freedom Car" in a letter to Congress. Duffy described this as the right for Americans to operate vehicles that are non-automated and disconnected, proposing a ban on government requirements for wireless data transmission or automated driving systems.

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