FTC warns carmakers against illegal data collection

The commission pointed out enforcement actions taken against companies in other sectors

According to reports, the FTC (Federal Trade Commission) Office of Technology has issued a warning to automakers that sell cars with connected tech.

As per the reports, connected cars have been on the FTC's radar for years. While they are not taking any specific action against carmakers at this point, FTC did mention that automakers do not have the licence to monetize people's information beyond the purposes needed.

FTC stated that carmakers do not have the free license to monetize people’s information beyond purposes needed to provide their requested product or service. It went on to add that recurring revenue streams do not outweigh the need for meaningful privacy safeguards.

The commission pointed out enforcement actions taken against companies in other sectors, which have illegally collected and used sensitive data for automated decisions.

Source: ARSTechnica