• The Federal Trade Commission released a statement aimed at deterring the misuse of car customer data.
  • It outlines that it will take action to protect consumers if automakers illegally collect, use, or disclose personal data
  • This is the first public action by the FTC on this matter since 2018

In the same way a phone can keep track of far more information than one might realize, a car can too. Modern automobiles can store not just GPS location data but also fingerprints, interior video, audio, and more. Now, the Federal Trade Commission (FTC) is reminding car companies that it’s watching and that it can take action should it see a breach of the law.

Earlier this month, U.S. Senators called for the FTC to investigate several automakers. They claimed that the companies in question, including BMW, Volkswagen, Nissan, and Mercedes-Benz, admitted giving up sensitive data about customers to government agencies without a warrant. While the commission didn’t comment on the letter, it did call out some of its actions in the past and what it expects from automakers now.

Read: FTC Forced To Delay Rules Protecting Consumers From Shady Tactics After Dealer Tantrum

“Car manufacturers – and all businesses – should take note that the FTC will take action to protect consumers against the illegal collection, use, and disclosure of their personal data,” the FTC said. For example, geolocation data is sensitive as it could track customers anywhere including to domestic abuse shelters, reproductive health clinics, or places of worship. The FTC called out a case against InMarket who allegedly used sensitive data to illegally group customers into specific groups.

It’s also achieved settlements from companies like BetterHelp and Cerebral over disclosing sensitive data to third parties for advertising purposes. Finally, it called out a situation with RiteAid centered around the misuse of facial recognition programs. It’s not hard to see how these cases could directly relate to automotive customers in today’s day and age.

FTC Warns Automakers That It’s Watching How They Use Sensitive Customer Data

The solution is simple, says the FTC: don’t collect the data in the first place. That seems like a very optimistic outlook for an industry that has leaned into the idea of making billions from data in recent times. On the flip side, customers concerned about the situation have a surefire way of avoiding the problem. They simply need to avoid owning a connected vehicle. Only in that case can they be sure that it’s not collecting their data.