Privacy on Wheels: Are you being followed?

* Basic Identifiers: Names, contact details, and addresses linked to vehicle ownership.

* Location and Journey Data: Real-time tracking that logs routes, destinations, and travel patterns.

* Driving Behavior and Vehicle Performance: Information on speed, braking habits, fuel consumption, and driving style.

* In-Vehicle Communications: Voice commands, call logs, and conversations with in-car assistants.

* Infotainment Data: Personal data linked to music preferences, app usage, and phone connections.

All of this data is potentially identifiable and constitutes "personal data" under the DPDPA, which defines personal data broadly to include both basic identifiers and more technical information, such as vehicle performance data.

How Data Is Collected

Data flows from connected vehicles through a complex network of sensors, cameras, microphones, and IoT devices that continuously monitor the vehicle’s environment and the driver’s behavior. This data is often transmitted in real-time to the cloud for processing by automobile manufacturers. As vehicles sync with mobile apps, they also collect information from smartphones, adding another layer of data exchange.

Privacy Risks and Concerns

With the vast amount of data connected vehicles collect, several privacy and security risks emerge:

- Data Breaches: Connected vehicles transmit sensitive data that could be vulnerable to hacking or unauthorized access, especially location data.

- Surveillance and Tracking: Continuous GPS tracking can expose personal habits and locations, potentially leading to unwanted surveillance and profiling.

- Invasive Profiling and Marketing: The personal data collected can fuel targeted marketing, profiling consumers based on their driving habits, app usage, and preferences.

DPDPA Compliance Challenges for the Automotive Industry

The DPDPA introduces significant obligations for automobile manufacturers to ensure data privacy and security, requiring compliance with strict guidelines:

# Data Minimization: The DPDPA mandates that only the essential data necessary for a vehicle’s operation should be collected. Automakers must carefully evaluate which types of data are necessary for navigation, safety, or diagnostics.

# Transparency and Consent: Manufacturers must clearly inform vehicle owners about the data being collected, its purpose, and how it will be used. Consent must be informed, specific, and freely given. This is a significant departure from past practices where broad, blanket consent was often assumed.

# Purpose Limitation: Data collected should only be used for the purpose for which consent was granted. If consent is withdrawn, manufacturers must cease processing the data and ensure its deletion.

# Data Principal Rights: Users have rights to access, rectify, delete, and withdraw consent regarding their personal data. Automakers must ensure their systems allow for easy exercise of these rights, especially in the case of location tracking.

# Security Measures: Manufacturers are required to implement strong security practices, including encryption, regular audits, secure data transmission, and strict access controls to protect data from unauthorized access.

# User-Friendly Privacy Controls: Privacy settings should be easy to access, allowing users to control or limit the data they share. This includes the ability to disable location tracking and other data collection features.

The Path Toward a Privacy-First Future

As connected vehicles become more mainstream, ensuring data privacy should be a top priority for the automotive industry. The DPDPA’s requirements will drive automakers to adopt more transparent data practices, offering consumers greater control over their personal information. Non-compliance with these regulations can lead to significant financial penalties and reputational damage.

For consumers, it is essential to understand what data their vehicle collects and how it is being used. Consumers should demand transparency and the ability to control the data they share. As the market matures, it is likely that consumers will begin to prioritize privacy features when considering which vehicles to buy, just as they now consider factors like fuel efficiency and color options.

In the future, we can expect manufacturers to highlight robust privacy practices in their marketing, similar to the approach taken by the smartphone industry. Consumers will be more informed and empowered to make choices based on how companies handle their data, creating a competitive market where privacy becomes an integral part of the product offering.

Conclusion

The rise of connected vehicles presents both opportunities and challenges. While the benefits of smarter, safer, and more efficient transportation are clear, the collection and processing of vast amounts of personal data raise significant privacy concerns. The DPDPA provides a comprehensive framework for addressing these concerns and ensuring that the automotive industry respects user privacy. As the industry adapts to these new regulations, both manufacturers and consumers must work together to ensure that innovation in mobility goes hand in hand with respect for privacy. The future of connected vehicles hinges not just on technology but on how well privacy is safeguarded in this new era of smart transportation.

(Akshayy S. Nanda, Partner at Saraf and Partners.)

Views are personal, and do not represent the stand of this publication.