Texas Attorney General Launches Probe into Car Manufacturers for Alleged Unauthorized Data Harvesting and Sales
Texas Attorney General Ken Paxton is delving into the practices of several car manufacturers over concerns that they have been covertly harvesting a wide array of data from drivers' vehicles and then selling this information to third parties. This probe, sparked by a rising number of reports, is set to determine whether these companies have crossed the line by not obtaining explicit consent from consumers for the collection and sale of their personal data.
The probe, launched under the Texas Deceptive Trade Practices – Consumer Protection Act, empowers the Office of the Attorney General to scrutinize and challenge false, misleading, or potentially deceptive business conduct. Car manufacturers, together with the third parties with whom they have allegedly shared data, are being prompted to submit documents shedding light on these practices. The documents requested include those that disclose to what level the customers were informed about the extent of data collection and the subsequent sale of their personal information.
In a statement acquired by the Texas Attorney General's Office, Paxton expressed the gravity of the concern, stating, “The technology in modern vehicles enables manufacturers to collect millions of data points about the people driving them.” He continued, noting the public's growing apprehension, “Recently, consumers have grown extremely concerned that their driving data is being reported to their insurance company without their knowledge or authorization.”
This investigation comes on the heels of heightening unease among consumers who are more aware and cautious about their digital footprints than ever before. Insurance providers, who stand as one of the primary benefactors from the allegedly undisclosed transaction of data, could face scrutiny depending on the outcome of the investigation. Meanwhile, the car manufacturers in question may have to brace for a potential overhaul in their data collection practices and consumer disclosure policies, especially if the investigation finds them in violation of consumer protection provisions.
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