Understanding Auto Data Tracking Schemes

Most newly-manufactured automobiles are equipped with on-board software capable of tracking your personal and driving data to some degree. Geolocation data, driving behavior, and other data are being collected by automakers, and in some cases, that data is sold to data brokers and insurance companies who can possibly monetize the data.

For years now, car companies have been accused of collecting information like your location, driving habits, voice commands, and some personal data stored on your mobile phone if connected to the car’s connected navigation, bluetooth network and infotainment dashboard system.

Many consumers have probably assumed that their vehicle had the ability to track location and movements with the onboard GPS capabilities. This is not necessarily an invasion of privacy in itself. However, what many consumers have not known is the fact that many automakers have been sharing and selling this data with third parties who ostensibly can profit from the large dataset.

There are similar concerns for car owners who plug their phones into the vehicle’s infotainment system, gaining access to practically any data saved on their devices, like their phone book, call logs, text messages, pictures, and location data.

Unfortunately, there is not much federal data privacy regulation specific to automakers who want to collect and sell your personal data. This is particularly true when you consent to much of the connected device capability your vehicle offers. Many car owners sign off on some portion of these auto data tracking intrusions without even knowing it by failing to read the small print or reading the entirety of an owner’s manual.

Attorneys have argued that automakers are taking advantage of car owners, and unlawfully sharing data with data brokers and insurance companies to the detriment of millions of car owners and consumers. Several auto data tracking lawsuits have been filed by state Attorney Generals and class action consumer protection lawyers on behalf of plaintiffs nationwide.

Many car manufacturers, however, still violate consumer privacy rights with geolocation trackers and other auto data tracking technology, and more litigation on these matters is expected in the near future. Contact an experienced class action data misuse and privacy lawyer to discuss your legal rights.

What Are Automakers Doing With Your Personal Data?

Reports published in 2024 by the New York Times, investigated in detail how automakers have been selling a range of driving and personal data to insurance companies about the driving behavior of millions of consumers. In many cases, car owners were not informed that such technology was embedded in their vehicles and reportedly never agreed to be tracked or part of any auto data sharing program.

Automakers apparently have an agreement with the Federal Trade Commission (FTC) to provide notice about collecting certain data like driver behavior information. But recent litigation suggests that some automakers have tested the limits of these guidelines.

Car owners have been shocked to learn that their vehicle has been tracking them and sharing that data with third parties. Individuals are even more surprised to learn when their insurance premiums increase as a result of their vehicle-sharing driving behavior data (tracking excessive speed, hard braking, etc.) with data brokers and insurers.

Some of the collected data has also allegedly been shared with law enforcement agencies in several states. Many car insurance companies offer programs where an automaker can install a telematics device in a vehicle that tracks detailed driving habits, ideally to reward individuals but more often penalizes them. Such devices and capabilties, attorneys argue, should always be optional.

Event data recorders–a vehicle’s “black box”–are included in most new cars. These data recorders collect various auto tracking data, including geolocation data, driving behavior data, voice recordings, vehicle diagnostics, seatbelt usage, and some data from any connected devices.

Car companies say these features are all meant to benefit the consumer and “personalize your driving experience,” but it is hard to imagine this is their ultimate intent. Consumer protection advocates and data privacy lawyers are wary of such claims. The fact is, automakers can profit from the sharing of auto tracking data. They can use collected data for targeted advertising and can sell critical data to insurers.

What Are Some Examples of Auto Data Tracking Technology?

General Motors found itself a defendant in an auto data tracking lawsuit after plaintiffs learned that GM was allegedly sharing driving behavior data with data brokers like LexisNexis and Verisk that worked directly with the insurance industry. GM collected data on trip distances, the start and end times of trips, driving speed, and whether or not a driver took hard corners, hard-braked or quickly accelerated. Other data tracking software tracked forward collision alerts, lane-departure warnings and seat belt reminders. Car’s now know what music consumers prefer and can also track biometric data, including the heart rate of a driver.

GM said that this data collection only occurs when consumers turn on their OnStar software, a connected services plan, and enroll in the Smart Driver program. But some plaintiffs said they never enrolled in these programs, never agreed to any intrusive auto data tracking scheme, and were still tracked.

Texas Attorney General Ken Paxton eventually filed a lawsuit against General Motors over the company’s location data sales, claiming that the automaker violated consumer privacy rights. The lawsuit claimed GM misled drivers into sharing their data, which was then sold to data brokers. This data was reportedly used by insurers to assign risk scores to drivers, and in turn affected their insurance rates without their knowledge. Paxton opened an investigation on multiple car companies regarding their collection and sharing of consumer personal data.