On July 31, 2023, the California Privacy Protection Agency (CPPA) announced an enforcement review of the data privacy practices of connected vehicle (CV) manufacturers and technologies. This marks the first time the state's new privacy regulator has used its review power under the California Consumer Privacy Act (CCPA) since the implementing CCPA regulations began taking effect in March (see here for more details).
In his press statement announcing the review, CPPA's Executive Director Ashkan Soltani stated that "[m]odern vehicles are effectively connected computers on wheels...able to collect a wealth of information via built-in apps, sensors, and cameras, which can monitor people both inside and near the vehicle." CPPA's Enforcement Division will investigate how companies in the connected vehicle space are complying with California law when they collect and use consumer data. With internal and external cameras, built-in apps and potentially hundreds of onboard sensors, CVs today are veritable moving data centers, and only becoming more so each year. This has enabled modern CVs to bring an expanding list of cutting-edge capabilities, including improved safety features, infotainment, smartphone integration, remote updates and predictive maintenance. CPPA has focused on the fact that vehicle manufacturers, developers and other companies involved in the manufacture and deployment of CVs and related tech are gathering personal data on consumers and their daily activities, including their current location, biometric data, preferences and personal habits, and whether they have obtained the necessary consent to collect this data and are safeguarding it in a manner consistent with the CCPA. CPPA notes that in addition to the CV owner, manufacturers and other technology companies may be collecting information on drivers, passengers, rideshare service users and pedestrians potentially without their knowledge. The press release notes that with upwards of 35 million vehicles registered in California, there are large numbers of Californians who could have their privacy violated by virtue of being a driver, passenger or even being in the vicinity of these vehicles.
This CPPA announcement arrives just weeks after the California Attorney General announced an investigative sweep into companies' compliance with the CCPA with respect to employees and job applicants, following the expiration of the employee and business-to-business data exemptions on January 1, 2023.
For more information about California's CCPA and its ongoing impact on businesses, please see our CCPA Litigation and Enforcement Report.
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