Ford pledges to stop selling driver data to brokers
The automaker follows General Motors' $220 million settlement with a new privacy commitment for connected vehicle customers.
By Luca Harrison ·
Ford Motor Co. announced on Sunday that it will not sell customer driving data to third-party data brokers. The company issued the pledge to distinguish itself from rivals who have faced legal challenges over telematics sharing.
Kristin Jones, Ford's chief privacy officer, wrote in a blog post that the automaker intends to earn consumer trust through these protections. Jones stated, "We know that trust is earned. Protecting your personal information is one way we intend to earn it every day."
The move follows a $220 million settlement by General Motors. GM agreed to pay the sum to resolve claims that it illegally sold driver and location information to data brokers. The agreement requires GM to limit data collection and obtain express consent from drivers before gathering information.
Ford plans to use aggregation and anonymization techniques to protect customer data. The company says it will provide clear information about how it uses personal data. While Ford will continue to use data to improve safety, it will allow customers to adjust the amount of data they share.
A recent examination of 21 vehicle brands found that every brand transmitted data to at least one third-party domain over Wi-Fi. More than half of these brands contacted domains specializing in advertising, tracking, or analytics. Companies such as Adobe, LexisNexis, and Amplitude gather vehicle details to sell to insurers or target ads.
Mozilla, a global nonprofit, recently labeled modern connected cars the worst category of products for privacy. The organization found that 92 percent of reviewed automakers give drivers little control over their personal data. Additionally, 84 percent of those manufacturers share user data with outside parties.
Ford surveyed more than 1,000 US customers, including both Ford and non-Ford owners. The respondents agreed that privacy is a top concern. Forty-one percent said they were extremely or very concerned about data privacy in the auto industry. This level of concern was lower than what respondents reported for social media companies, the government, and financial institutions.
The Federal Trade Commission can act against companies that make deceptive claims. If Ford breaks its public promise, the FTC and state attorneys general can sue the company. They can force Ford to sign binding agreements and impose substantial financial fines. However, a blog post is not a legal contract. The official privacy policy and connected vehicle terms contain standard exceptions for police requests or service providers.
Customers who opt out of data sharing face tradeoffs. Ford states that data collection depends on the features a driver wants to use. Turning off vehicle tracking or location sharing often disables built-in navigation, remote start, and wireless software updates.
