Data collection, use and disclosure — including biometric and location information — can threaten consumers’ privacy and financial welfare, the FTC said in a recent blog post about its heightened scrutiny on the industry. The agency noted that data gleaned from connected cars can be used not only to stalk people and artificially raise insurance premiums, but may also present national security issues if the information is shared with foreign actors. In recent years, researchers have discovered numerous vulnerabilities in connected cars that can allow malign actors to access personal information and even take over the control of the vehicle. As reported by ARS Technica, hackers can easily unlock cars, and start or stop the engine through apps like SiriusXM radio. The hackers were armed with only the vehicle identification number and were able to access the systems for vehicles from Acura, Honda, Infiniti, Kia, and Nissan. Tesla has taken steps to bolster vehicle security by paying hackers and security researchers to find vulnerabilities in its electric cars. In March, the company gave $200,000 and a brand-new Model 3 to hackers who found a new vulnerability in the carmaker’s system. The FTC says it will continue efforts to protect data that can be obtained through vehicles. “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 warned. The agency advised that “firms do not have the free license to monetize people’s information beyond purposes needed to provide their requested product or service, and firms shouldn’t let business model incentives outweigh the need for meaningful privacy safeguards.” FTC officials also urge automakers to collect less data in order to better protect consumers. “The easiest way that companies can avoid harming consumers from the collection, use, and sharing of sensitive information is by simply not collecting it in the first place,” the agency said. “When they are motivated to, all businesses—including auto manufacturers — are capable of building products with safeguards that protect consumers.”The U.S. Federal Trade Commission (FTC) has issued a warning to automakers over what companies are able to do with vast amounts of data that are collected on consumers through their cars and connected apps.
