Toyota Gets a Massive Break in Data Sharing Lawsuit
Data sharing is a new source of frustration among drivers. Some automakers have been busted for collecting data and selling it to insurance companies that suddenly raise your rates. But Toyota just got a massive win in a lawsuit related to violating invasion of privacy laws.
Toyota gets a break in data sharing lawsuit due to the plaintiff’s agreement
A judge just granted Toyota its motion to compel arbitration in a data sharing lawsuit. Allegedly, Toyota has been illegally selling and sharing the driving behavior of drivers in its cars since the 2018 models were introduced.
As a result, insurance companies like Progressive have been using the data to increase rates without letting drivers know.
The data includes locations, speed, direction, swerving, braking, and cornering events. According to CarComplaints, even image and voice data from vehicles may have been collected.
This allegedly violates the Federal Wiretap, Computer Fraud, and Abuse Acts. All companies reportedly violated the invasion of privacy laws.
However, Toyota showed the judge that the plaintiff agreed to arbitrate his claims. The arbitration agreement in the terms of use argues that all claims regarding driving data must be arbitrated.
Plus, no driving data can be collected unless drivers agree to the Connected Services agreement. The plaintiff did agree to the terms and has clear instructions on how to disable the vehicle data transmission capability.
The automaker argues this is clear to the plaintiff and all customers. Also, if the user declines the data consent agreement, they can’t access any data transmission for the vehicle until it is turned off.
If the user accepts the agreement, they’re provided with the option to select which connected services to enroll in. So, make sure you read all of the fine print before clicking ‘Accept’.
