As cars become more technologically advanced, they handle increasing amounts of data, presenting a challenge for carmakers: safeguarding user data. A recent lawsuit in the United States may set a precedent for how car manufacturers handle and communicate data practices to customers.
Florida-based Romeo Chicco has sued General Motors, OnStar, and third-party data broker LexisNexis Risk Solutions, alleging unauthorized sharing of his data. The data, collected via OnStar in GM cars, was shared with insurance companies, leading to higher insurance costs for Chicco.
Chicco claims he never consented to this data sharing, alleging privacy violations. However, GM asserts that Chicco agreed to the data sharing when he registered for OnStar, receiving the privacy policy and terms. GM argues that Chicco’s consent was obtained.
This case underscores the issue of buried privacy practices in contracts. Privacy policies are often lengthy and complex, leading users to accept them without fully understanding them. Simplifying these policies could be crucial for transparency and customer understanding.
Chicco’s complaint highlights the opacity of OnStar’s privacy statement, alleging deception. However, finding the privacy statement online is straightforward, indicating the importance of user responsibility.
GM explains its data-sharing practices, including with insurance companies, in its privacy statement. This transparency is crucial for informing users about data usage.
Chicco seeks damages and an order to prevent further data sharing without consent. GM contends that the court should dismiss the case, emphasizing Chicco’s prior consent. This lawsuit could shape how carmakers address user privacy concerns in the future.