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Texas AG Investigates Car Manufacturers for Unauthorized Driver Data Sales

Multiple car manufacturersJune 6, 2024Texas Attorney General

Summary

Texas Attorney General Ken Paxton opened an investigation into multiple car manufacturers for collecting and selling driver data to third parties, including insurance companies, without consumers' knowledge or consent. The investigation, conducted under the Texas Deceptive Trade Practices – Consumer Protection Act, seeks documents about data collection practices and disclosures made to customers. The AG's office is concerned about invasive data collection and potential deceptive practices.

Contract Impact

In-house legal teams should review all agreements involving data handling, particularly vendor contracts with third-party data recipients (e.g., insurance companies), customer-facing privacy policies and terms of service, and any data processing agreements. Focus on clauses governing data sharing, third-party disclosures, consumer consent mechanisms, data retention, and breach notification. Changes may be needed to ensure explicit, informed consent for driver data collection and sale, implement clear and conspicuous disclosures about data practices, include opt-out mechanisms, and align retention and security protocols with the Texas Deceptive Trade Practices – Consumer Protection Act to avoid deceptive practices.

Contract Search Terms

data sharing agreementconsent mechanismthird-party disclosure clausedriver data collection policyprivacy notice integrationdata processing addendumopt-out provisiondata retention schedulebreach notification clauseconsumer consent form

Laws Cited

Texas Deceptive Trade Practices – Consumer Protection Act

Violation Types

Entity Details

Entity

Multiple car manufacturers

Also known as: Car Manufacturers

Industry

Automotive

Official Sources

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