U.S. Senator Jeff Merkley of Oregon recently introduced new legislation aimed at protecting consumers’ privacy from companies that collect and sell data from vehicles. The Car Privacy Rights Act seeks to combat the growing trend of data collection from Americans’ cars—often without drivers’ knowledge—by automakers, insurance companies, and digital applications.
Recent reports have exposed how car manufacturers are selling private data from millions of vehicles, generating billions of dollars in profits. In some cases, this data has been sold to insurance companies, allowing them to use sensitive information like speed, braking patterns, and acceleration data to raise insurance premiums.
“We need to hit the brakes on big corporations collecting and profiting off of drivers’ data without their consent,” Senator Merkley said. “Automakers should not have the power to invade our privacy unchecked, and we need strong protections in place to guarantee that Americans’ privacy comes before corporate profits.”
The Car Privacy Rights Act, co-sponsored by Senator Elizabeth Warren (D-MA), would require companies to obtain explicit consent from consumers before collecting, sharing, or selling their car data. The bill also mandates that consumers be given a clear option to opt out of data collection altogether, preventing them from being locked into practices they may not agree with.
If passed, the legislation would introduce a series of measures designed to strengthen privacy protections for drivers across the country. These measures include prohibiting car manufacturers from sharing or selling any data unless the consumer is clearly notified and gives explicit consent. This would ensure that consumers have control over their data, knowing exactly when and why it is being shared.
In addition, the bill would require all car manufacturers to provide consumers with an easy way to revoke their consent directly through the company’s website, mobile applications, or by direct mail. However, there would be an exception for data shared with the National Highway Traffic Safety Administration (NHTSA), where it is necessary for safety purposes.
To improve transparency, the bill would mandate annual reports from car manufacturers and insurance companies to the Federal Trade Commission (FTC). These reports would detail what consumer data is being collected, the purpose of the data collection, and with whom the data is being shared or sold. The FTC would then be required to submit a report to Congress each year based on the findings, ensuring accountability in data practices.
Another key provision of the bill addresses the troubling intersection of car data and domestic violence. In some cases, geolocation services from car applications have been used by abusers to track and control survivors. The bill directs the FTC, in partnership with the Federal Communications Commission (FCC) and NHTSA, to issue guidance on how automakers can address these specific concerns, ensuring that survivors have the ability to deny or revoke access to applications that track their location.
Merkley emphasized that this legislation is a step toward protecting consumers from the overreach of corporations that exploit personal data for profit. With technology increasingly integrated into everyday life, including the vehicles we drive, he stressed the need for robust privacy protections.
The Car Privacy Rights Act of 2024 comes in response to a growing awareness that consumers are often unaware that their cars are tracking, storing, and sharing personal data. The bill aims to protect consumers’ car data from being sold to the highest bidder without consent, while addressing serious concerns about how this data can be misused in cases of domestic violence.
