Data privacy advocates are worried about geolocation tracking with connected cars and have emerged in favor of California rules to allow drivers to opt out of precise geolocation on their vehicles.
Proposition 24, known as the California Privacy Rights Act that voters approved in 2020, is set to be implemented in 2023 and should preclude insurance companies and automakers from using precise geolocation data from vehicles without a driver’s permission. However, privacy groups including Consumer Watchdog are concerned that auto and insurance industry lobbyists will prevent full adoption of Prop 24 and other privacy regulations.
Consumer Watchdog presented its privacy concerns contained in a 24-page report in hearings before the California Privacy Protection Agency on Wednesday. “Consumers should have the right to say no to being tracked in their cars,” said Justin Kloczko, the report’s author, in a statement. “California’s new privacy law offers the best hope for limits on automotive surveillance if the California Privacy Protection Agency fulfills its mandate to give consumers an opt-out right.”
He and other privacy advocates are worried that carmakers and insurance companies could gather GPS data to be used or sold to other entities, a similar concern that faced smartphone owners for years. Another worry is that geolocation data can be used to levy unfair insurance rates based on driving behaviors.
Part of the concern is that carmakers are working with software companies to bring advertising directly to car dashboards. Chevy’s OnStar Service geolocation data is fed to apps for Dominos, IHOP and Shell while Starbucks uses geolocation to know when a person is more likely to buy coffee, Kloczko said. The Consumer Watchdog report says 13 leading automakers are using and sharing data from connected vehicles already.
The report also disputes the notion that companies collecting the location data are using anonymized data. Such data can be paired with other personal data such as credit card usage to target an individual. Wejo claims to see the speed at which cars are traveling on 95% of U.S. highways, the report adds.
The report also criticizes California Insurance Commissioner Ricardo Lara for vowing to protect consumer data and privacy then later working with insurance companies to allow electronic surveillance when it becomes politically acceptable.
California’s insurance reform known as Prop 103 bans the use of telematics to determine auto premiums, but Consumer Watchdog is concerned that insurance companies still consider their use of telematics data a trade secret so that consumers don’t know what data is used to decide rates.
At least two major groups have opposed the opt-out provision passed in Prop 24, the Alliance for Automotive Innovation and the Personal Insurance Federation of California representing seven large insurers.
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