Texas AG Investigates Car Manufacturers over Driver Data Privacy

By Dabbie Davis

Jun 08, 2024 05:04 AM EDT

MAN INSIDE VEHICLE
(Photo : PEXELS/ JESHOOTS.com)

The Texas attorney general, Ken Paxton, is leading an inquiry into the ways in which manufacturers collect and use driver data for profit. In order to safeguard drivers' rights and ensure that privacy rules are being obeyed, the state of Texas is actively monitoring these companies.

Driver Data Privacy, Investigating Car Manufacturers

A number of car manufacturers are currently the focus of investigations led by Texas Attorney General Ken Paxton. These inquiries specifically address the practices of multiple automotive companies regarding the acquisition and trading of personal data belonging to drivers.

Following extensive media coverage highlighting the intrusive and unrestricted data gathering methods of car manufacturers, an investigation was initiated as per a recent press release. Attorney General Ken Paxton is investigating the activities of multiple automakers for allegedly gathering and disclosing driver information to unidentified parties, including insurance companies, as reported by Spectrum News.

Citing the Texas Deceptive Trade Practices Consumer Protection Act, which grants the attorney general the power to investigate acts that are misleading or deceptive, Paxton made the announcement on Thursday.

In addition to highlighting the vast data collection capabilities of modern car technologies, Paxton voiced consumer worries about the unapproved sharing of driving records with insurance companies.The alleged unapproved collection and trade of data without consumer consent have sparked worries, prompting a comprehensive investigation and necessary enforcement actions.

Additionally, as reported by Motor1.com, Paxton is pursuing the companies under the regulations of the state's Deceptive Trade Practices-Consumer Protection Act. This legislation authorizes the attorney general to scrutinize businesses for engaging in deceptive, misleading, or false practices.

Requests for information have already been sent to the implicated automakers and the third parties that received the data. Paxton characterized the unauthorized gathering of driver data as intrusive and troubling, emphasizing the necessity for a comprehensive investigation and suitable enforcement measures. Furthermore, Texas is set to implement a new data privacy law commencing on July 1.

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Manufacturers in Question

According to additional reports from Motor1.com, The Record recently disclosed that Paxton's office dispatched "civil investigation demand" notices to a minimum of four automakers back in April, namely Kia, General Motors, Subaru, and Mitsubishi.

The attorney general's office is specifically requesting documentation from these companies regarding the disclosures made to customers concerning the scope of their data collection methods and the subsequent trading of customer data.

As outlined in Hoodline, Drivers are expressing increasing apprehension about the potential sharing of their vehicle data with their insurance providers without explicit consent. By examining both car manufacturers and the intricate web of third-party entities they collaborate with, Paxton is delving into a potentially unsettling realm of practices.

Paxton emphasized the concerning nature of the unapproved data collection and trade without consumer consent, highlighting the necessity for a comprehensive investigation and suitable enforcement measures. As part of the process, the automotive companies have been tasked with providing their documentation to shed light on the data gathered during driving activities and the parties involved in its acquisition.

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