Cars are selling your data

Hello! Hope you’re having a great weekend.

This week, we’re talking about data and how cars are helping insurance companies spike prices, amongst other things.

What do you think about all this?

Key Takeaways

Don’t have much time? Here’s the summary of what we’re talking about:

• Cars Are Selling Our Data: Modern vehicles are now major data-collecting machines

• How It Began: Data tracking in cars started in the early 2000s, with systems like OnStar leading the way

• Tracking Without Consent: Incidents involving OnStar and other systems have shown that cars can monitor conversations

• Technology and Privacy: A 2023 study revealed that 84% of car brands share or sell user data

• Consumer Backlash: Growing awareness of data privacy has led to increased concerns among drivers
  

NEWSBITES

Every week, we scour the web for the most essential news. Here’s what you need to know this week:

• Global demand for EVs is dropping, due to infrastructure challenges

• Norway is one of the few countries with more EVs than fuel-powered cars

• No one is buying this shuttered Chrysler factory

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LONG READ

Cars Are Selling Our Data

It's potentially a $400 billion business, and it’s right under our noses. Data is a powerful asset—arguably the currency of the future.

The more companies know about us, the more products they can sell.

While we often associate data collection with health apps and smartphones, the reality is that our cars and trucks are the most insecure devices collecting our information.

Today, we’re diving into how cars became data-collecting machines and what this means for the future.

How Did This Begin in the First Place?

Many might think this situation is new, but it’s been around for over two decades.

Cars have been able to collect data since the early 2000s. Evidence of data tracking in vehicles can be traced back to 2001, with companies like OnStar leading the way.

Founded in 1996, OnStar relied on telecom networks to transmit information, meaning cars needed to be constantly connected.

By 1997, this system was installed in several vehicles, initially to locate stolen cars but quickly evolving to provide various driver assistance features.

These systems proved their worth to customers—OnStar reported 150,000 calls in a single month in 2021, 6,000 of them were crash-related.

However, they also opened the door to extensive data collection.

They Had Been Tracking Us All Along

It may sound like a thriller plot, but it’s real life.

In 2001, the FBI used OnStar to track a Mercedes Benz involved in criminal activity.

(BTW, our article has the VIN, in case you want to search for that car. We haven’t).

The efficiency of the system was alarming. In another case, a man accidentally pressed the OnStar button in his used Chevy Tahoe.

This led to a sheriff eavesdropping on a conversation about a possible drug deal, all because the operator heard the conversation.

These incidents highlight the technology's ability to monitor conversations without consent.

As vehicles became more advanced, the capacity for data collection expanded, with GM and others insisting they only monitored when legally required.

Yet, as technology progressed, so did suspicions.

Technology Goes Both Ways

OnStar and similar services were just the beginning of this technological leap, turning cars into "computers on wheels”, and “data collection machines”, as this article explains.

This 2023 Mozilla Foundation study revealed that modern vehicles are among the worst offenders for privacy protection.

In fact, 84% of brands share or sell data to third parties. This raises a crucial question: how much of our information is being collected?

Take Google Maps, for example. Constant connectivity means our driving habits can feed data back to companies, potentially leading to targeted ads while driving.

By the way, Ford already filed a patent for in-car ads. Read more about it here.

The Consequences of Data Tracking

Interest in data privacy has surged since the pandemic.

Companies like Privacy4Cars have emerged to help consumers manage their data.

This is the first of a three-part series on car data privacy. Check all three here.

They reveal unsettling findings about the type of information being collected, including social security numbers, biometrics, and geolocation data.

According to this article, by 2030, 95% of vehicles are expected to have embedded connectivity, which presents new challenges for privacy.

Companies Get Called Out

This recent New York Times article highlighted how automakers like GM and Ford have shared data with insurance companies, impacting drivers’ premiums based on their driving behavior.

In a shocking revelation, one driver discovered a 258-page report detailing his driving habits without his knowledge.

Just days later, GM announced it would stop sharing data with brokers—a small victory, but it left many questions unanswered.

As awareness grows, drivers are increasingly concerned about their data.

A MarketWatch study found that 65% of car owners are reconsidering new purchases due to privacy concerns. We’d love to know what you think.

🔗 Want to dive deeper into this topic? Read our full article for an in-depth look and listen to our podcast for expert insights.