The Commission criticizes companies for secretly disclosing information to third parties.
The Federal Trade Commission (FTC) has warned automakers that it is closely monitoring their collection and sale of customer data. The Commission noted possible measures that may be applicable to automakers for transmitting sensitive data to advertisers.
Special attention is paid to the sale of geodata and "secret disclosure of confidential information". The Commission said automakers and all other companies should understand that the FTC will protect consumers from the illegal collection and use of their personal data. Cars and data privacy have long been on the commission's radar.
The FTC stressed that the sale of geolocation data falls under "enhanced protection" under the law, since cars, like mobile phones, can reveal the exact location of consumers.
The FTC blog is a signal to the industry to stop potentially illegal activities. Such publications are often the result of significant internal discussions and hearings within the commission. Privacy4Cars called it a "serious warning" to the entire automotive industry about the need to improve data privacy practices.
The post was the FTC's first public comment on connected cars since 2018. The announcement comes amid pressure from U.S. senators calling on the commission to take action against automakers for data privacy violations.
The FTC also warned that companies should only use sensitive data for its intended purpose. Automakers should use and monetize the sensitive data available to them only for the intended purpose (except as necessary to provide the service), and should not put business interests ahead of meaningful privacy measures.
The issue of car data privacy has become an important one for consumer advocates in recent years. So, Privacy4Cars last year released a tool called Vehicle Privacy Report, which shows what information about a particular car can be collected. By entering the vehicle's VIN, the user can see what car manufacturers can know about it. It is estimated that cars can produce 25 GB of data per hour.
At the same time, a WIRED report showed that most major car brands collect data on location, speed, acceleration, braking, cornering, and other driving parameters. Some companies also collect data about the vehicle's condition, such as fuel level, tire pressure, and engine errors. In addition, some automakers can access data from connected devices, such as smartphones, tablets, or navigators.
Moreover, the US Congress recently released the results of an investigation, according to which most major automakers hand over drivers location data to the police without a court warrant, despite public promises to refrain from such actions.
The Federal Trade Commission (FTC) has warned automakers that it is closely monitoring their collection and sale of customer data. The Commission noted possible measures that may be applicable to automakers for transmitting sensitive data to advertisers.
Special attention is paid to the sale of geodata and "secret disclosure of confidential information". The Commission said automakers and all other companies should understand that the FTC will protect consumers from the illegal collection and use of their personal data. Cars and data privacy have long been on the commission's radar.
The FTC stressed that the sale of geolocation data falls under "enhanced protection" under the law, since cars, like mobile phones, can reveal the exact location of consumers.
The FTC blog is a signal to the industry to stop potentially illegal activities. Such publications are often the result of significant internal discussions and hearings within the commission. Privacy4Cars called it a "serious warning" to the entire automotive industry about the need to improve data privacy practices.
The post was the FTC's first public comment on connected cars since 2018. The announcement comes amid pressure from U.S. senators calling on the commission to take action against automakers for data privacy violations.
The FTC also warned that companies should only use sensitive data for its intended purpose. Automakers should use and monetize the sensitive data available to them only for the intended purpose (except as necessary to provide the service), and should not put business interests ahead of meaningful privacy measures.
The issue of car data privacy has become an important one for consumer advocates in recent years. So, Privacy4Cars last year released a tool called Vehicle Privacy Report, which shows what information about a particular car can be collected. By entering the vehicle's VIN, the user can see what car manufacturers can know about it. It is estimated that cars can produce 25 GB of data per hour.
At the same time, a WIRED report showed that most major car brands collect data on location, speed, acceleration, braking, cornering, and other driving parameters. Some companies also collect data about the vehicle's condition, such as fuel level, tire pressure, and engine errors. In addition, some automakers can access data from connected devices, such as smartphones, tablets, or navigators.
Moreover, the US Congress recently released the results of an investigation, according to which most major automakers hand over drivers location data to the police without a court warrant, despite public promises to refrain from such actions.
