The report, released Monday by the Government Accountability Office, details how six major automakers and four other companies have varying practices and policies when it comes to sharing and protecting the privacy of American citizens collected from onboard navigation systems.
DETROIT, MI- A new report from the U.S. government outlines numerous concerns with how some companies, including the Detroit automakers, are collecting and using location data from vehicles.
The report, released Monday by the Government Accountability Office, details how six major automakers and four technology companies have varying practices and policies when it comes to sharing and protecting the privacy of data collected from onboard navigation systems.
“All 10 selected companies have taken steps consistent with some, but not all, industry-recommended privacy practices,” according to the GAO. “In addition, the companies' privacy practices were, in certain instances, unclear, which could make it difficult for consumers to understand the privacy risks that may exist.”
Automakers included in the 32-page report were Chrysler Group LLC, Ford Motor Co., General Motors Co., Honda Motor Co., Nissan Motor Co., and Toyota Motor Corp. The other four companies were navigation device (PND) companies Garmin and TomTom and app developers Google Maps and Telenav portable.
The report generalizes all of the companies, but does not identify which companies are abiding or disobeying the GAO’s suggestions.
The market for telematics services provided by auto manufacturers in North America is expected to increase from 11.8 million subscribers in 2012 to 31.6 million in 2016No federal law governs the collection, use, and sale of personal information by private-sector companies. Instead, companies themselves and various federal laws guard the privacy of consumers' data.
Lori Rectanus, a director of the GAO team that compiled the report, said many consumers don't full control over how their data is being used.
"The good news is that even in the absence of a federal law ... we found that all of them were taking some steps consistent with recommended privacy practices to protect location data," she told MLive during an interview Tuesday. "The bad news is that they still might be doing some things that consumers may not be aware of."
Officials found all of the selected companies disclose that they collect and share location data, and they do not share or sell personally identifiable location data to marketing companies or data brokers.
However, inconsistent with recommended practices, nine companies' disclosures provided "broadly worded" reasons for collecting data, such as stating reasons for collecting location data were not exhaustive, according to the report. Five companies' disclosures do not describe the purposes for sharing location data.
Lack of clear disclosures increase the risk that “data may be collected or shared for purposes that the consumer is not expecting or might not have agreed to,” the GAO report said.
Consumers also cannot request their historical location data to be deleted when data are associated with an individual or vehicle, which is against the GAO’s recommended practices.
Automakers collect data from the vehicle to provide services such as turn-by-turn directions, real-time traffic information, emergency services and other features that are becoming standard on many vehicles.
Four automakers, according to GAO, even keep the location data in a format that is associated with an individual vehicle yet do not allow consumers to delete their data or request their deletion.
The GAO said privacy advocates worry data being collected to “track where consumers are, which can in turn be used to steal their identity, stalk them or monitor them without their knowledge. In addition, location data can be used to infer other sensitive information about individuals such as their religious affiliation or political activities.”
A representative from the Alliance of Automobile Manufacturers, a trade organization representing all of the automakers in the study except Honda and Toyota, was not immediately available when contacted by MLive.
GM -- the largest automaker in the U.S. -- said that its OnStar security, safety and navigation services division purges data data provided through its turn-by-turn navigation system as soon as a directions are no longer needed.
"GM is a global leader in connected vehicles, delivering valuable, innovative services that improve the overall customer experience," GM said in a statement. "GM and OnStar take seriously matters that affect our customers’ privacy and operate services with strong privacy protections and practices."
GAO said the 10 companies were selected because they represent the largest U.S. market share or because their services are widely used. GAO examined documentation and interviewed representatives from each company regarding their privacy practices in effect in 2013 and compared those practices to industry recommended privacy practices.
The government organization, according to the report, is not making recommendations to federal agencies as to what to do with the findings from the report, which was asked to review the issue and find "what selected companies that provide in-car location-based services use location data for and if they share the data, and how these companies' policies and reported practices align with industry-recommended privacy practices."
Rectanus said when consumers are purchasing a new service or product, such as a vehicle, with location services they should always ask questions and know what they're getting themselves into because at times it's even hard for the automakers to keep up with changes in technology.
"We recognize that it's challenging for everyone to keep up," she said.
The report -- conducted from February 2013 to December 2013 -- comes as all major automakers and tech developers ascend on Las Vegas for the 2014 Consumer Electronics Show, which has become increasingly important to the automakers as onboard systems become more mainstream in vehicles.
The market for telematics services provided by auto manufacturers in North America is expected to increase from 11.8 million subscribers in 2012 to 31.6 million in 2016, according to a study from market research analyst group Frost & Sullivan.
Numerous proposals aimed at protecting the privacy of location data by mobile devices and navigation systems have been introduced by Members of Congress, none of the proposals have been enacted.
Click here for the full GAO report.
Michael Wayland covers the automotive industry for MLive. Email him at MWayland@mlive.com & follow him on Twitter @MikeWayland or Google+.