Consumer data privacy concerns mount for connected cars

The data harvested from connected vehicles (essentially a car hooked up to the internet) aims to boost performance and deliver tailored services. Yet, this convenience comes with a host of privacy issues.

A recent survey of 1,300 people, found that 96% percent of consumers believe they should own and control any data their cars generate. Furthermore, 78% feel uneasy about automakers collecting driver data at all.

Consumer sentiment by the numbers:

• 82% are uncomfortable with data being sold to insurers, with nearly half (48%) being extremely uncomfortable.

• 79% don’t trust data brokers with their vehicle data.

• 81% would be uncomfortable if automakers or data brokers shared data with law enforcement without their knowledge.

Of note: In response to a lawsuit filed on March 13, General Motors announced it would stop collecting customers' driving data. The lawsuit accused GM, OnStar, and LexisNexis of breaking privacy and consumer protection laws by disclosing data to insurance companies without consumer consent. In turn, these customers saw an unexpected spike in their premiums, sometimes by double.

What's more: The Mozilla Foundation, a global non-profit organization researching digital privacy, labeled all 25 studied automakers as privacy risks. It also revealed cars to be the worst product category for privacy.

Law enforcement: Mozilla's study found that over half (56%) of automakers could share customer car data with the government or law enforcement. They can do so upon request, often without needing a warrant. Nearly half (47%) of drivers surveyed by Jerry said they would be very uncomfortable with such practices.

Insurance: Telematics programs like OnStar allow insurers to monitor driving behaviors. Over half (54%) of respondents are open to these voluntary programs. Yet, 82% are uncomfortable with insurers accessing their data without consent in order to set premiums.

Legislative actions: Members of Congress are increasingly questioning automakers about their data practices. States like New Jersey, Tennessee, New York, and California have even passed vehicle data legislation.

Bottom line: Automakers can make billions from data monetization but it may incur meaningful losses when it comes to customer trust and brand loyalty.

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