This year, several car manufacturers have been accused of selling their customers’ driving data: Scandal reignites debate on data confidentiality. One of them, the automotive giant General Motors (GM), is facing serious allegations of customer data privacy. Texas Attorney General Ken Paxton has filed a lawsuit against the company, accusing it of collecting and selling driving data without the consent of the vehicle owner. This case raises important questions about the business practices of automakers in the era of connected cars.
The charges..
According to the complaint, General Motors systematically collected data on the driving habits of 1.8 million Texans, and then sold this information to third parties, including data brokers such as LexisNexis Risk Solutions and Verisk Analytics.
The complaint sets out a number of grievances :
- Unauthorized data collection: GM allegedly recorded detailed information about the driver’s trip.
- Lack of transparency: Consumers were allegedly not informed about the sale of data to third-party companies.
- False justification: GM allegedly presented this collection as a means of improving the safety and performance of the car.
Ken Paxton condemned this practice in the strongest terms :
«Millions of American drivers wanted to buy a car, not a comprehensive surveillance system that illegally records information about their every journey and sells their data to any company willing to pay for it.»
The impact on consumers..
If, and only if, the accusations are confirmed, there could be serious consequences for owners of GM vehicles. Among the risks identified:
- Increased insurance premiums: Driving data such as sudden braking, speeding, and nighttime trips can be used by insurance companies to adjust fares.
- Invasion of privacy: Systematic monitoring of driving habits is an invasion of a driver’s privacy.
- Use of data for unknown purposes: The sale of information to third parties raises questions about its possible commercial use or uncontrolled dissemination.
This case is part of a broader context in which concerns are growing about the privacy of data received from connected cars. A recent Mozilla report called modern cars a « privacy nightmare. »
Problems of the insurance industry
The data collected by vehicles offers lucrative opportunities for insurance companies. Using this information, insurers can create personalised ‘driving scores’ based on factors such as:
- Dangerous driving behavior (sudden braking, speeding);
- Driving conditions (night driving, dangerous roads);
- Frequency and distance of the trip.
These indicators can be used to dynamically adjust insurance premiums, benefits for good drivers, but a potential threat for those deemed to be at risk.
This is an international problem..
This is not an isolated case. With the advent of connected cars, the collection of personal data has become commonplace in the automotive industry. Equipped with sensors, GPS and other advanced technologies, these vehicles generate an impressive amount of information about the user. While this data helps to improve security and usability, its commercial use raises serious ethical and legal issues.
Conclusion
The lawsuit could be a turning point in regulating the collection and use of data in the automotive industry. This highlights the need for greater transparency on the part of manufacturers and a clear legal framework to protect consumers.
In a world where technology plays a central role, it is essential that users remain informed and demanding when it comes to managing their personal data. Because while connectivity offers undeniable advantages, it must not come at the expense of privacy.
Sources :
The New York Times : Automakers Are Sharing Consumers’ Driving Behavior With Insurance Companies ;
https://www.nytimes.com/2024/03/11/technology/carmakers-driver-tracking-insurance.html
– https://www.insurancejournal.com/news/southeast/2024/03/15/765068.htm
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