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U.S. Senators Introduce Automobile-Focused Cybersecurity Legislation

Auto Finance U.S. Senate Privacy/Cyber Risk & Data Security

Privacy, Cyber Risk & Data Security

On July 21, Senators Blumenthal (D-CT) and Markey (D-MA) introduced legislation, the Security and Privacy in Your Car Act (“SPY Car" Act), that would protect drivers’ privacy while allowing them to remain connected to the growing technological advances in the automobile industry. In addition to directing the National Highway Traffic Safety Administration (NHTSA) and the FTC to develop federal cybersecurity and privacy standards that would secure motor vehicles manufactured for sale in the United States and protect drivers, the SPY Car Act seeks to establish a rating system, or “cyber dashboard,” that “informs consumers about how well the vehicle protects drivers’ security and privacy” beyond the minimum standards potentially set by the NHTSA and the FTC. The requirements that motor vehicles: (i) be equipped with reasonable measures to protect against hacking attacks; (ii) maintain the ability to reasonably secure data collected within electronic systems; and (iii) be equipped with capabilities to immediately detect, report, and stop attempts to intercept driving data or control the vehicle, are among the cybersecurity standards outlined in the SPY Car Act. In regards to privacy standards, the legislation proposes the following: (i) transparency, such that owners or lessees are explicitly aware of the collection, transmission, retention, and use of driving data; (ii) consumer choice, allowing owners or lessees to opt out of data collection and retention without losing access to other features, such as key navigation; and (iii) marketing prohibition, which would ban companies from using personal driving information for advertising purposes without obtaining the affirmative express consent of the owner or lessee. The introduction of the SPY Car Act follows Senator Markey’s 2015 Tracking & Hacking: Security & Privacy Gaps Put American Drivers at Risk report, which showed gaps in the auto industry’s ability to prevent hackers from accessing internet-connected features in vehicles.