Cars and the Growing Issue of Data Privacy: What You Need to Know

January 23, 2025, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

The rise of connected cars is transforming the way we drive, but it is also raising significant concerns about privacy. Modern vehicles are more than just modes of transportation—they are increasingly sophisticated machines equipped with an array of sensors, software, and data collection systems. While these technologies promise to improve safety, convenience, and driving experiences, they also collect vast amounts of personal data about drivers and passengers. This raises important legal and ethical questions about how that data is used, who has access to it, and what steps should be taken to protect privacy.

The Data-Capturing Capabilities of Modern Vehicles

Today’s vehicles are equipped with a wide range of technologies that capture everything from location data to personal preferences and driving behaviour. Many cars have GPS systems, in-car assistants (like Apple's Siri or Amazon's Alexa), and even cameras and microphones. In addition, many cars are now connected to the internet, enabling features such as remote diagnostics, over-the-air software updates, and driver-assistance systems like lane-keeping and collision warnings.

However, all this connectivity also means that cars are constantly gathering information about their users. A single trip could provide a company with information such as where a driver has been, how fast they were going, how often they stop, and even what music they prefer to listen to. Some vehicles can also track biometric data, including heart rate and driving behaviour patterns, while other systems collect data about the driver’s interactions with the vehicle’s infotainment system.

While this data can be used to improve vehicle performance, customer satisfaction, and safety, the volume and sensitivity of the data raise serious concerns. Who owns this data? What happens to it once it’s collected? How long is it retained? And perhaps most importantly, is it being used responsibly and ethically?

The Privacy Risks of Vehicle Data Collection

One of the main concerns surrounding the data collection in modern cars is the potential for surveillance. As noted in a recent discussion on CBC’s Day 6, automakers and third-party companies that partner with them can access data collected by vehicles. This can lead to an increasing erosion of privacy, as personal information about drivers' habits and preferences can be shared without the driver’s full knowledge or consent.

The vast amounts of data collected by connected vehicles also present risks in the event of a data breach. Personal data such as location history, driving routes, and even conversations that occur inside the car can be valuable to hackers. If this information is accessed, it could lead to serious privacy violations and potential misuse of personal data. In extreme cases, data could be used to track individuals, or even to target them with highly personalized and intrusive advertisements or other services.

Additionally, many drivers are unaware of the extent of the data being collected, and often, the terms and conditions they agree to when purchasing or leasing a vehicle are vague about data collection and usage. This lack of transparency can make it difficult for consumers to understand how their data is being used and to take steps to protect themselves.

The Legal Landscape in Canada

In Canada, privacy laws such as the Personal Information Protection and Electronic Documents Act (PIPEDA) govern the collection, use, and disclosure of personal data by private-sector organizations. Under PIPEDA, organizations must obtain consent to collect personal data, and they must ensure that the data is protected against misuse or unauthorized access. Consumers also have the right to access the personal information that organizations hold about them and can request that this data be corrected or deleted.

However, applying these laws to connected vehicles is not always straightforward. Automakers and technology companies argue that much of the data collected falls under categories that are not clearly defined by PIPEDA. For example, vehicle data may be considered business information rather than personal information, particularly when the data is used for operational purposes such as improving vehicle performance or diagnosing mechanical issues. Furthermore, data is often anonymized, making it more difficult to identify individuals, but still potentially revealing when combined with other data sources.

Currently, PIPEDA is being reviewed and updated to address the growing concerns about privacy in the digital age. In December 2022, the Canadian government introduced the Digital Charter Implementation Act to modernize privacy laws and provide more robust protections for Canadians’ data. Among other things, the bill proposes stronger penalties for companies that violate privacy laws and aims to give Canadians greater control over their personal information.

However, there are still significant challenges in the evolving area of connected vehicles. While consumers have some rights over their data, enforcing privacy regulations in the automotive sector remains complex. Cars are sold across provincial and national borders, meaning that personal data could potentially be transferred or stored in jurisdictions with different privacy standards.

What Can You Do to Protect Your Privacy?

As a consumer, there are several steps you can take to protect your privacy when it comes to connected cars:

1. Review Privacy Settings: Many modern vehicles allow users to adjust privacy settings, including turning off data-sharing features or limiting which data is collected. Before purchasing or leasing a vehicle, ensure you understand what data will be collected and how it will be used.

2. Read the Terms and Conditions: Although they are often lengthy and filled with legal jargon, it’s important to read the terms and conditions when setting up your vehicle’s connected features. Look for any clauses related to data collection, sharing, and storage.

3. Limit Connectivity: If you’re concerned about privacy, consider limiting your car’s connectivity. Disable features like location tracking, voice assistants, and app integrations that are not necessary for your driving experience.

4. Stay Informed: Stay updated on the latest developments in privacy laws and connected vehicle technology. As the legal landscape continues to evolve, new regulations may offer greater protections for consumers.

Conclusion

The collection of personal data by modern vehicles is an issue that raises important legal, ethical, and privacy concerns. While the benefits of connected cars are undeniable, it is essential for consumers to be aware of the potential risks and take steps to protect their privacy. In Canada, the ongoing review of privacy laws reflects the need for stronger safeguards as the automotive industry continues to innovate. As connected cars become an increasingly integral part of our daily lives, it’s crucial for both lawmakers and consumers to strike the right balance between technological advancement and privacy protection.

About Deutschmann Law

Deutschmann Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit www.deutschmannlaw.com or call us at 1-519-742-7774.

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