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Attorney General Ken Paxton Opens Investigation into Car Manufacturers’ Collection and Sale of Drivers’ Data

Several Car ManufacturersJune 6, 2024Texas Attorney General

Summary

Texas Attorney General Ken Paxton initiated an investigation into multiple car manufacturers for allegedly collecting drivers' data without consent and selling it to third parties, including insurance providers. The investigation, authorized under the Texas Deceptive Trade Practices – Consumer Protection Act, requires manufacturers and data purchasers to produce documents related to their data practices and customer disclosures. The AG highlighted concerns about invasive, non-consensual data collection and sale occurring without consumer knowledge.

Remedy

Car manufacturers and third-party data buyers are required to produce documents relevant to their data collection and sale practices, including all disclosures provided to customers regarding data use and sharing.

Reporting Requirements

Contract Impact

In-house legal teams in the automotive industry or those contracting with car manufacturers should review all customer and vendor agreements for compliance with data privacy disclosure and consent requirements. Ensure contracts clearly outline what driver data is collected, how it is used, and all third parties (including insurance providers) with whom data is shared. Verify that valid, informed consumer consent is obtained prior to collecting or selling driver data, and that contracts include transparency obligations and opt-out mechanisms where required. Additionally, review agreements with third-party data buyers to confirm data use is restricted to authorized purposes and proper safeguards are in place.

Contract Search Terms

driver data collectiondata sale to third partiesconsumer consent for data sharingdata disclosure noticestelematics data agreementsdriving behavior data sharinginsurance data sharing clausesvehicle data collection disclosures

Laws Cited

Texas Deceptive Trade Practices – Consumer Protection Act

Violation Types

Entity Details

Entity

Several Car Manufacturers

Industry

Automotive

Official Sources

Source Evidence

Title
"Attorney General Ken Paxton Opens Investigation into Car Manufacturers’ Collection and Sale of Drivers’ Data"
Event Date
"June 06, 2024"
Jurisdiction
"Texas Attorney General Ken Paxton"
Event Type
"opened an investigation into several car manufacturers"
Entity Name
"several car manufacturers"
Laws Cited
"The Texas Deceptive Trade Practices – Consumer Protection Act authorizes the Office of the Attorney General to investigate false, misleading, or deceptive acts or practices."

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