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Consumer Watchdog Sounds Alarm on Privacy in Connected Cars

Your car could be sharing more than you think. Here's why California residents should be worried about their connected cars' data privacy.

In front of the picture, we see a white car on which "Police" is written. Behind that, there are...
In front of the picture, we see a white car on which "Police" is written. Behind that, there are many cars moving on the road. On either side of the road, we see grass and trees. This picture is clicked outside the city.

Consumer Watchdog Sounds Alarm on Privacy in Connected Cars

Consumer Watchdog has raised alarm over privacy concerns in connected cars, affecting millions of California residents. The organization has reported on car companies, such as those like CarMax and Tesla (TSLA), collecting personal data, including travel destinations and purchases, with many residents unaware they've signed away data rights due to complex agreements.

With over 35 million vehicles registered in California, the state's residents are significantly impacted. The automotive data industry is projected to reach a staggering $400 billion by 2030, highlighting the value of the data collected from cars.

The California Privacy Protection Agency (CPPA) is currently investigating car companies' compliance with data privacy laws under the California Consumer Privacy Act (CCPA). While no specific companies like CarMax or Tesla have been named, the investigation aims to ensure consumer protection. Meanwhile, third-party data mining companies have been sharing personal car data with law enforcement agencies. Under CCPA, consumers have the right to opt-out of geolocation tracking in their cars, a right that may often go unnoticed due to complex data collection agreements.

Car companies, including those selling cars like CarMax, reserve the right to collect, use, and share data for marketing purposes, raising concerns about consumer privacy. The CPPA's investigation seeks to ensure these companies comply with data privacy laws, protecting California residents' personal information. As connected cars become more prevalent, understanding and exercising data rights will be crucial for consumers.

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