Texas AG Investigates Automakers’ Data Privacy PracticesTexas AG Investigates Automakers’ Data Privacy Practices On June 6, 2024, the Texas Attorney General’s Office launched an investigation into the data collection and sale practices of several automakers. The investigation comes amid rising concerns over the privacy implications of connected cars and the vast amount of data they collect on drivers. According to the AG, automakers have been accused of collecting personal data without drivers’ knowledge and selling it to third parties, including insurance companies. The investigation is authorized under the Texas Deceptive Trade Practices-Consumer Protection Act. The AG’s office is requesting documents related to automakers’ communications with consumers about their data practices. Similar investigations are underway in other states, including California, where the Privacy Protection Agency launched an investigation in July 2023. At the federal level, the Federal Communications Commission and the Federal Trade Commission have also expressed concern over connected car data privacy. The FCC has proposed rules to prevent stalking through the use of connected cars. The FTC has emphasized the importance of data broker oversight and has brought several enforcement actions related to sensitive data, including geolocation tracking data. Several automakers and data brokers have also been sued for collecting and selling driver data. The Texas investigation and other regulatory actions could have significant implications for the connected vehicle industry and the broader data privacy landscape.
Texas AG launches investigation into automakers over driver data privacy practices
On June 6, 2024, the Office of the Texas Attorney General (“AG”) joined the recent surge in regulatory and judicial scrutiny of privacy issues related to connected cars, driver data, and telematics, and launched an investigation into the data practices of several automakers. AG Ken Paxton announced that his office will investigate the mass collection and sale of drivers’ personal data. The AG attributed the investigation to growing concerns related to recent “widespread reporting” of allegations that automakers are collecting vast amounts of driver data without drivers’ knowledge and selling that data to third parties, including insurance companies.
The investigation is authorized under the Texas Deceptive Trade Practices-Consumer Protection Act, and the AG is requesting documents from automakers and third parties relevant to such conduct, including communications to consumers about their data practices.
In several other states, agencies (including the California Privacy Protection Agency (“CPPA”)) have initiated regulatory investigations and/or legislators have introduced or passed legislation regarding driver data privacy. The CPPA’s investigation, launched in July 2023, is ongoing. At the federal level, both the Federal Communications Commission and the Federal Trade Commission have also focused on the issue. The FCC has proposed rules to help prevent stalking of abuse victims through the use of connected cars. The FTC has also emphasized that connected car data has been a concern for years, and is of particular importance given recent enforcement actions regarding data brokers and sensitive data, including geolocation tracking data. Several automakers and data brokers have also been sued for collecting and selling driver data.
We continue to monitor the results of Texas and other regulatory investigations into connected vehicles and driver data privacy, which could have far-reaching implications for several industries.
