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Home News

Privacy Lawsuit Favorable to Automakers

November 9, 2023
Reading Time: 4 mins read
in News
Privacy Lawsuit Favorable to Automakers

 

A recent court ruling has garnered significant attention as a federal judge declined to revive a class action lawsuit accusing four major automakers, including Honda, Toyota, Volkswagen, and General Motors, of violating Washington state’s privacy laws. The lawsuit alleged that these companies used their vehicles’ infotainment systems to record and intercept customers’ private text messages and mobile phone call logs.

Furthermore, the Seattle-based appellate judge determined that this practice did not cross the legal threshold for an illegal privacy violation under state law, delivering a substantial legal victory to the automakers. This decision also has implications for five related class action suits concerning the same issue, one of which had been previously dismissed on appeal, involving Ford.

The plaintiffs in the four active cases had challenged a prior judge’s dismissal, but the appellate judge’s ruling emphasized that the interception and recording of mobile phone activity did not meet the criteria set by the Washington Privacy Act. The Act requires plaintiffs to demonstrate a threat to their “business, person, or reputation” to establish a valid privacy violation. This decision exemplifies the ongoing debate surrounding vehicle infotainment systems and data privacy in the automotive industry.

In one of the cases against Honda, plaintiffs had claimed that infotainment systems in the company’s vehicles, dating back to at least 2014, were downloading and storing copies of all text messages from connected smartphones, raising concerns about data privacy and security.

Interestingly, the lawsuit revealed that an Annapolis, Maryland-based company called Berla Corporation provided the technology to some car manufacturers. This technology made it impossible for vehicle owners to access their communications and call logs after messages were downloaded, but it allowed law enforcement to access the data, raising further questions about data control and privacy.

Moreover, the report highlights the broader issue of car manufacturers monetizing car owners’ data by selling it to advertisers as a revenue-boosting strategy, shedding light on a growing concern about the proliferation of sensors in vehicles without robust regulation.

Reference:
  • 22-35448 – AMERICAN HONDA MOTOR CO., INC.
  • VOLKSWAGEN GROUP OF AMERICA, INC.
Tags: AutomotiveCyber NewsCyber News 2023CybersecurityNovember 2023ToyotaUnited StatesVolkswagen
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