Senator Urges Federal Trade Commission (FTC) To Investigate How Car Manufacturers Handle Data

In December, Senator Edward Markey reached out to major car manufacturers regarding their practices regarding data privacy protection in their vehicles. However, Markey found their responses to be elusive and unclear. Consequently, he urged Federal Trade Commission Chair Lina Khan to launch an investigation, according to The Record.

In his letter to Khan, Markey highlighted that the car manufacturers seemed to sidestep the real privacy concerns, instead focusing on the potential benefits of data usage. They also refused to disclose whether they share data for commercial purposes.

While the manufacturers claimed to offer consumers the choice to consent to data collection, only one disclosed the percentage of buyers who actually consent. Additionally, most admitted to only providing the option to delete data in states where it’s legally mandated.

Markey expressed disappointment to Khan, noting that the manufacturers failed to address key questions, such as whether they collect excessive data, if refusing consent affects vehicle functionality, or if they’ve experienced cyberattacks.

Regarding data sharing with law enforcement, Markey found that 12 out of 14 manufacturers admitted to sharing car owners’ data, mostly in response to legal orders. However, Nissan’s policy of sharing data in response to a “valid compulsory process” was criticized as vague and potentially meaningless by privacy experts.

Markey emphasized the urgency of the matter, citing consumer concerns about data handling and incidents of stalking facilitated by location data. He highlighted the growing demand from Americans for transparency in how car manufacturers handle and profit from their private data.

In addition to Markey’s efforts, the Federal Communications Commission (FCC) announced plans to increase scrutiny of connected cars. A proposed rulemaking will gather input on the nature and frequency of connected car services.

Markey’s concern over the evasive responses from car manufacturers and the broader public demand for clarity on data privacy highlight the need for thorough investigation and regulation in this area.