Oregon Senator Jeff Merkley announced Thursday the introduction of new legislation to protect consumers’ privacy from companies who collect and sell Americans’ car data.
Currently, he said, there is a troubling trend of collecting, storing, and selling data from Americans’ vehicles – largely without drivers’ knowledge. Recent reporting has even documented automakers selling the data from millions of cars to make billions in profit, including car manufacturers selling consumers’ private data to insurance companies.
“We need to hit the brakes on big corporations collecting and profiting off of drivers’ data without their consent,” 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.”
Merkley introduced the Car Privacy Rights Act to require any company or third party that collects car data – including car manufacturers, insurance companies, and digital applications – to get explicit consent from the consumer to share or sell their data. The bill also requires these entities to provide a clear option to opt-out of the data collection entirely, ensuring consumers are not locked into these predatory practices.
The Car Privacy Rights Act stands up for the privacy of drivers across the nation by:
- Banning car manufacturers and other entities from sharing or selling any data collected from a consumer via their vehicle, unless the consumer is clearly notified of each instance of data sharing, its intent, and explicitly grants affirmative, express consent to allow the data transfer.
- Requiring all car manufacturers to allow consumers to easily revoke consent to this opt-in directly on their website, applications and direct mail.
- This includes an exception for data sharing with the National Highway Traffic Safety Administration (NHTSA).
- Requiring each car manufacturer and insurance company to annually submit a report to the Federal Trade Commission (FTC) regarding their consumer data privacy practices, data being collected, its purpose, to whom such data is being shared or sold, and an overview of their data sharing practices.
- The FTC is required to annually submit a report to Congress regarding such information.
- Directing the FTC—in partnership with the Federal Communications Commission (FCC) and NHTSA—to issue guidance or promulgate regulations regarding how car manufacturers can address domestic violence issues related to any car applications with geolocation services.
The Car Privacy Rights Act is cosponsored by Senator Elizabeth Warren (D-MA).
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