Ford Abandons Selling Customers' Driving Habits to Third-Party Brokers

Ford has made a bold move in the automotive industry by vowing not to sell its customers' driving habits to third-party data brokers. This promise comes as the company attempts to differentiate itself from competitors that have faced criticism for sharing telematics with unauthorized firms.

To achieve this goal, Ford plans to employ techniques such as aggregating and anonymizing customer data to protect it from falling into the wrong hands. The automaker also intends to allow customers to control how much or little data they share with the company, giving them more agency over their personal information.

This move is a response to recent controversies in the industry, including General Motors' agreement to pay $220 million to settle claims that it had sold driver and location information to data brokers without permission. As part of this settlement, GM has been required to limit its collection of driving data and obtain explicit consent from drivers before collecting their information.

Ford's chief privacy officer, Kristin Jones, emphasized the importance of earning trust through transparency and accountability in a recent blog post. By prioritizing customer data protection, Ford is positioning itself as a leader in responsible data handling practices amidst an industry marred by questionable business tactics.

Ford has made it clear that it will not sell data about customers' driving habits to third-party companies. This stance is in contrast to other automakers which have been found to be sharing customer data without their consent.

A recent study of 21 vehicle brands revealed that every single one transmitted data over Wi-Fi to at least one external domain. The domains receiving this data often specialize in advertising, tracking, or analytics and gather information about drivers' habits for use by insurance companies or advertisers.

The global nonprofit Mozilla has been vocal about the poor state of connected car privacy, labeling modern vehicles as "the worst category of products for privacy" ever reviewed. According to their report, 92 percent of automakers provide little control over personal data, with 84 percent sharing user data with outside parties.

Ford's promise is backed by a survey of US customers, which found that over half understand some level of data sharing is acceptable but still prioritized protecting their privacy.

If a company makes misleading claims about how customer data is used, regulatory bodies can intervene to protect consumers' interests.

The Federal Trade Commission in the US has authority to stop companies from making deceptive statements and can also take action against companies that break their promises.

In such cases, the FTC and state attorneys general can sue the company, forcing it to sign legally binding agreements to correct its practices and imposing substantial financial penalties.

A company's public promise is not a contract in itself, but rather a statement of its intentions and policies.

The actual rules governing data use are found in a company's official privacy policy and terms of service for connected vehicles. These documents outline the exceptions that allow a company to share customer data, such as complying with law enforcement requests or working with third-party providers.

Customers should be aware that opting out of data sharing can have consequences, including disabling key features like built-in navigation, remote start, and wireless software updates.