Connected Cars: The legislative environment, potential reform and privacy issues

The digital transformation of the automotive industry brings many promises for a better future. However, cars, long a symbol of individual freedom, are becoming increasingly susceptible to undisclosed privacy risks. Next to smartphones, new 21st century vehicles are among the most used connected devices by humans. A "connected car" can communicate with external systems to provide services or support driving functionality. They give drivers access to additional features, streamline the reduction of carbon emissions, eliminate high repair costs through over-the-air software updates and make driving safer. The global race to release increasingly automated vehicles to the market has accelerated in recent years. According to one estimate, 78 million cars on the road have embedded cyber connections. Consulting firm McKinsey predicted that by 2030, 95% of new vehicles sold globally will be connected cars.

Despite the widely recognized benefits, the privacy implications of connected cars have not been sufficiently examined, and legislative responses in Canada are still lacking. Although a 2022 survey found nearly 70% of Canadians consider privacy important and believe consumer data should be safeguarded, a 2023 survey by researchers at the nonprofit Mozilla Foundation found drivers of connected cars in North America have little to no control over the personal data collected by vehicles.

Furthermore, most drivers do not know what type and quantity of data is transmitted from their vehicles or who is collecting and analyzing it. Understanding the use and potential misuse of connected-car data, especially data that involves identifiable individuals within the meaning of Canadian law, is pivotal for the long-term success of this technology within the transportation industry.

Defining connected cars and their history