Automakers are increasingly gathering detailed data about drivers, often sharing or selling this information to third parties such as data brokers and insurance companies. General Motors recently faced a Federal Trade Commission penalty that prohibits it from selling customer data to consumer reporting agencies and data brokers for five years. GM had been collecting data on driving habits, including speeding and nighttime driving, through its OnStar connected services. Many drivers were unaware their data was being shared, as consent was embedded in complex service agreements.
Research by the Mozilla Foundation found that all major car manufacturers have inadequate privacy and security practices. Customers must navigate multiple overlapping policies for vehicles, connected services, smartphone apps, and financing, complicating their understanding of data collection. Consumer Reports also confirmed that nearly every automaker selling cars in the U.S. collects and shares driver behavior data.
Unlike smartphones, vehicles lack intuitive privacy controls, making it difficult for consumers to manage or opt out of data collection. This has led to calls for regulatory reform. The DRIVER Act, introduced by House Republicans, aims to give vehicle owners more control over their data but still permits automakers to collect and sell information, drawing criticism from privacy advocates who want limits on data collection itself.
Separately, a proposal dubbed the "Freedom Car" seeks to protect drivers' rights to operate vehicles without mandatory automated systems or wireless data transmission capabilities. However, this concept has not gained significant traction.
Despite growing awareness and some regulatory action, automakers have strong financial incentives to continue collecting data. Consumers increasingly express a desire for simpler vehicles without extensive data tracking, but the current data economy encourages ongoing collection and monetization.
Vehicle owners can attempt to opt out of data collection through automakers' privacy portals, though these are often difficult to navigate. Smartphone apps for connected car services may offer somewhat easier privacy controls. The issue remains a complex intersection of technology, privacy, and regulatory policy with significant implications for driver rights and data security.