New features on cars and phone apps can track where you go, when and how fast—among many other things. Here’s what to do about it.
3 min
Your car is watching you. What can you do to stop it?
Many vehicles today and their related phone apps are packed with safety and convenience features, including digital maps, navigation linked to GPS and the internet, remote starting and vehicle locaters to find your car in a crowded parking lot. Many also have microphones for voice control and some have cameras that detect who is driving to adjust things such as the seat.
But those features and others can have a dark side: Many can track where you go and when, how fast you drive and how hard you brake, where you park and spend time, even what music or podcasts you listen to. Such information can be a gold mine for marketers and insurers—and a target for hackers.
Privacy researchers say car buyers may not realise they agree to have such data collected by the automaker when they sign the papers for a new vehicle or use the carmaker’s phone app.
The Mozilla Foundation, a technology-focused nonprofit, examined the privacy practices of 25 car brands. Its conclusion: “These are the worst of any [product] category we’ve reviewed,” says Jen Caltrider, director of the group’s Privacy Not Included program. Among its findings are that most carmakers collect personal information, give customers little control over it, and may sell or share it with others.
Privacy experts say they also are concerned about provisions in car-maker privacy policies that allow them to share driver information with law-enforcement authorities under certain circumstances—sometimes without a warrant.
On May 14, the Federal Trade Commission told vehicle makers that it was monitoring their actions regarding car data. “Cars are much like mobile phones when it comes to revealing consumers’ persistent, precise location,” the agency said in a blog post. It added that companies “do not have the free license to monetise people’s information beyond purposes needed to provide their requested product or service….”
The car industry says that the combination of vehicle data monitoring, GPS and wireless communication—a field known as telematics—provides important features, some of them safety-related. Some systems can detect when you’ve been in an accident and call emergency services, or locate a car if it’s stolen. They can help you avoid a traffic jam or potential road hazards. Cars also can give you maintenance reminders, such as when a vehicle needs an oil change or new tires, and allow the carmaker to track the durability and function of certain components for future improvements.
A vehicle-industry trade group in 2014 issued voluntary guidelines for the collection and use of car data. The group, now called the Alliance for Automotive Innovation, says its members should give car owners and lessees choice in the “collection, use and sharing” of certain information and that this information should be collected “only as needed for legitimate business purposes.”
Some privacy groups, however, say the voluntary guidelines aren’t specific enough and aren’t always followed.
“It seems like an empty promise,” says Thorin Klosowski, a security and privacy expert with the nonprofit Electronic Frontier Foundation. “Car companies are becoming tech companies. Self-policing hasn’t been shown in other tech industries to be a reliable way for companies to operate.”
What is needed, according to these experts, is a federal privacy-protection law along the lines of the European Union’s General Data Protection Regulation. The car industry, for its part, also backs a federal privacy law , in part to have a nationwide standard as a number of states have adopted their own, differing laws.
Most carmakers issue their own lengthy privacy policies stating how they collect and disseminate car data. Some state that they can share or sell the information to third parties including marketers if the car owner agrees to it.
Among the six biggest sellers of vehicles in the U.S., Ford Motor says customers can turn off data and location sharing with the company. It says it “doesn’t sell any connected-vehicle data to brokers, period.” General Motors says it is “fostering trust through responsible data practices, enhanced user controls and clear benefits for customers.” Toyota says it gives customers “transparency and choice” in how vehicle data is collected and used and that they can “turn off all data transmission.”
Stellantis, owner of Chrysler, Dodge and Jeep, says any data it collects “is in accordance with applicable state privacy laws . Accordingly, Stellantis provides customers with a way to opt out of data collection.” Honda says it is “very clear about what we collect and how our owners can opt out” and “when we might share collected data with third parties.” Hyundai declined to comment and deferred to the Alliance for Automotive Innovation for a response.
Copyright 2020, Dow Jones & Company, Inc. All Rights Reserved Worldwide. LEARN MORE
BNW Developments has established a Sydney presence, joining Arada and Sobha Realty among the growing number of UAE developers pursuing Australian buyers and development opportunities.
The Australian leather house has opened an immersive four-day pop-up in Manhattan, unveiling its Bloom Collection and redefining what a product launch can look like.
Apple’s growth engine is showing signs of slowing, as rising costs, weaker services growth and AI competition challenge its profitability. With John Ternus taking the helm, the pressure is on to reignite innovation and sustain investor confidence.
3 min
The Apple growth and profit machine is wavering, and the boost from price increases might not be enough to keep it going at historic rates. That dials up the pressure on Apple’s new chief executive, John Ternus.
The company saved the bad news for its earnings call, an hour after it posted its results for the September quarter, projecting that for the current quarter its high-margin services business will continue to slow and that its widely watched gross profit margin will continue to fall.
Apple AAPL -1.83%decrease; down pointing triangle shares had been flat in post-close trading but declined as much as 4% after the company made the projections, which fell short of Wall Street estimates.
The impact of high memory costs are weighing even more heavily on the company, Ternus and Apple Chief Financial Officer Kevan Parekh said on the company’s earnings call. Apple has stockpiled cheaper components purchased earlier, but those inventories are dwindling.
When Ternus took over as Apple’s third chief executive of the past 29 years on Sept. 1, he inherited sky-high expectations. The men he followed were among the most successful company leaders in American business history. Steve Jobs revolutionized consumer devices multiple times. Tim Cook expanded Jobs’s creation to spectacular heights.
The expectations are reflected in Apple’s huge valuation. Oppenheimer analyst Martin Yang noted that Apple stock trades at 36 times next year’s expected earnings, a premium to the overall market, even though its earnings are only expected to grow 1%, which is slower than its tech peers.
“We see insufficient upside to justify the premium,” Yang wrote in an investor note, adding that Apple needs to boost iPhone sales growth and turn around its slowing services business to make him more bullish.
Investors have bid up Apple shares because it has been a port in the AI storm—a reliable and capital-efficient business that stands apart from rivals which are spending hundreds of billions of dollars racing to the AI frontier.
While others invest in data centers, Apple has been pouring its own cash into buybacks and dividends. But that safety may be challenged if Ternus can’t speed up Apple’s innovation engine.
Apple’s lagging performance in AI was evident when its new “Siri AI” chatbot arrived this past quarter. Its long-maligned assistant was already stale the day it arrived, surpassed by agents such as Instinct and Muse that can complete multistep tasks for consumers, while Siri still sets kitchen timers.
Apple needs to give people reasons to buy its devices as they get more expensive. The company raised prices across the board last quarter to help offset higher costs. Without compelling new features, a big question is whether consumers will slow the frequency of iPhone upgrades.
The new iPhone Duo appears to be a bright spot. Consumers are scooping up the $1,999 foldable smartphone despite mixed reviews—so many that Apple can’t keep up with demand. Shipping dates jumped out to January soon after the device went on sale, a disappointment for the normally reliable Apple supply chain.
Apple said its revenue grew 12% in the September quarter, slightly ahead of Wall Street’s expectations. Its widely tracked gross profit margin, at 47.9%, also came in just ahead of analyst estimates.
Apple will need to find new growth avenues because a reliable engine during the Cook era—the services business—is slowing. Courts and regulators worldwide have limited Apple’s ability to charge developers big fees to distribute apps through its App Store, the biggest component of the company’s services segment.
One of its most lucrative App Store fee generators has been the ChatGPT app from OpenAI. Around the time Apple accused OpenAI of trade-secret theft this past summer, OpenAI began redirecting potential subscribers to pay via its website instead of the App Store, skirting Apple’s tollbooth.
Apple’s valuation has bumped up against a ceiling in recent weeks. Six times it traded above a $5 trillion market capitalization intraday before finally closing above the threshold, which it has already fallen back below.
News Corp, owner of The Wall Street Journal, has a commercial agreement to supply news through Apple services.
