Automakers Collect and Sell Detailed Driving Data
Recent regulatory actions and privacy audits reveal that most new vehicles in the US track driver behavior and share this information with third parties, often without clear consent.
Modern vehicles have become sophisticated data collection tools, gathering extensive information about driver habits that is frequently sold to third parties. This practice has come under intense scrutiny following a significant regulatory penalty imposed on General Motors, highlighting a widespread industry trend where customer privacy is often overlooked in favor of data monetization.
According to reporting by The Verge, the issue extends far beyond a single manufacturer. Investigations by the Mozilla Foundation and Consumer Reports indicate that nearly every major automaker in the United States collects and shares driver behavior data. These findings suggest a systemic lack of transparency, where complex privacy policies obscure the extent of data harvesting from ordinary consumers.
Regulatory penalties target data brokers
The Federal Trade Commission recently issued a five-year ban on General Motors selling customer data to consumer reporting agencies and data brokers. This unprecedented penalty followed years of GM collecting details such as speeding frequency and night driving patterns through its OnStar connected services. The data was shared with brokers like LexisNexis and Verisk, which use it to create risk profiles for insurance companies.
Many drivers were unaware their data was being collected, having unknowingly consented by signing up for basic connected services. The settlement requires GM to simplify the process for turning off location tracking and to allow users to access and delete their data. This move aims to curb the opaque practices that previously allowed automakers to profit from private driving habits without meaningful consumer oversight.
Privacy controls remain difficult to manage
Unlike smartphones, where privacy settings are relatively accessible, vehicles spread data collection across multiple systems and overlapping policies. Researchers from the Mozilla Foundation found that customers are forced to accept separate terms for the car, connected services, smartphone apps, and financial services. This fragmentation makes it incredibly difficult for consumers to understand exactly what data is being collected and where it goes.
The complexity creates a barrier to informed consent, as users struggle to navigate the sheer volume of legal text. Consumer Reports confirmed that this lack of clarity is an industry-wide problem, with automakers continuing to share driver behavior data despite public concerns. The result is a digital environment where privacy is the default assumption rather than a guaranteed right, leaving drivers in a vulnerable position.
Proposed legislation faces privacy criticism
In response to these issues, lawmakers introduced the DRIVER Act, which seeks to establish that vehicle owners should own the data their cars generate. While the bill promises to give consumers more control, critics argue it falls short of addressing the core problem. The legislation would still allow automakers to continue gathering and selling data to third-party brokers, a point that privacy advocates consider a critical flaw.
Experts note that providing access and deletion rights does not prevent the initial excess collection of data. For true privacy protection, regulations need to limit what can be collected in the first place. The current legislative approach risks normalizing data selling by focusing on user rights after the fact, rather than restricting the commercial exploitation of personal driving information at the source.
