From biometric scans to real-time GPS tracking, connected cars are collecting more personal data than ever before—and most drivers have no idea where that data goes. In this Deep Dive, based on the article Consumer Data Privacy in Connected Cars, we explore the alarming lack of transparency in the auto industry’s data practices. Car manufacturers are under fire following privacy audits, lawsuits, and the first major enforcement action by the FTC. With over 400 million connected cars on the road this year and more than 90% of new cars projected to be 5G-connected by 2030, the stakes couldn’t be higher. Listen in as we unpack the risks, the emerging regulation, and what automakers must do to win back consumer trust in the age of data-driven vehicles.
What You’ll Learn in This Episode:
1. What Connected Cars Know About You
- Continuous data collection: location, telematics, biometrics, voice commands, video
- 84% of car brands can share consumer data with third parties; 76% can sell it outright
- Opting out often reduces essential features—or disables the car entirely
2. Regulatory and Legal Crackdowns Begin
- Mozilla’s audit calls the car industry “the worst” for privacy
- FTC's first enforcement action includes a 5-year ban on sharing location data
- Lawsuits allege driving data is used to raise insurance rates
3. The Tension Between Profit and Privacy
- Automakers monetize data via subscriptions, services, and third-party deals
- Consumers face unclear terms, limited choices, and little insight into who sees their data
- Calls for informed consent, transparency, and better opt-out functionality
4. The Path to Trust and Accountability
- What carmakers must do: secure storage, plain-language disclosures, consent-first policies
- Only partner with third parties that meet high privacy standards
- Regulation is coming—and automakers need to be ready
Key Takeaways:
- Connected cars are quietly becoming massive data collectors, raising major privacy concerns
- The auto industry is under scrutiny for its opaque data-sharing practices
- Consumers want transparency and real control—not a choice between convenience and privacy
- Government action is ramping up, and industry reform may not be optional much longer
- As vehicles evolve into mobile data hubs, privacy expectations must evolve too
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