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Ford’s Latest Patent: A Step Toward High-Tech Advertising or Privacy Invasion?


 

Among those filed recently is one from Ford for a system that gathers driver data to personalise in-car advertisements, which raises lots of concerns over privacy. This technological advancement can collect types of information from a car's GPS location to its driving habits and even conversations inside the vehicle. It aims to give targeted ads, real-time, which has raised issues among some privacy advocates over the level of surveillance this system will introduce.

While Ford explains patenting something does not equate to its actual implementation, the idea of the system raises some red flags. It shines a light on at least some of the dangers with gathering vast amounts of data and how that impacts any and all privacy concerns related to targeting consumers at the wheel.

What Does Ford's Patent Explain?

The patent explains the way in which information would be gathered and used by the system for delivering specific ads:

1. GPS Location: This one would identify where the car is and then which advertisements to pop up based on where various shops are in the area. Thus, if a driver is close to a fast food, then they may see an ad for that specific chain on the car's infotainment system.

2. Driving Situations: Ads can be targeted based on traffic conditions and speed of driving as well. When a driver is caught in heavy traffic, for example, ads might be displayed related to entertainment tools like audiobooks or podcasts.

3. Historical Data: Targeted on the basis of earlier behaviour such as which places one has earlier visited or what kind of music he prefers, historical data can be used.

4. In-Car Dialogue: The most contentious part of the patent is how the system will listen to dialogues going on inside the car, be it between the passengers or even among family members. If they are discussing going grocery shopping, the system could automatically point out nearby supermarkets.

Such data collection, particularly the dialogues, has been widely criticised as overly intrusive and a serious concern for privacy.

Privacy Concerns and a Backlash

As such, quite a few privacy advocates view this patent as a threat. Recording in-car conversations, even for the purpose of delivering ads, is a huge violation of privacy. If monitored at such levels, critics argue, it might lead to manipulations through advertisements and raise further worries regarding the usage and protection of data.

It's getting a little too intimate," says Daryl Killian, an automotive influencer discussing the issue. "We're so used to stuff popping up on our devices based on what we're doing online. For a car to be listening and sharing conversations is a bit much. It will send those consumers away who don't like the fact that companies collect this much data already.".

There are also concerns over safety, in that too many commercials can divert focus from driving.

Too much advertisement during driving may expose the driver to probable safety problems during very congested situations.

Ford Position and General Industry Trends

Ford has come out to explain that for them, patenting is just a ritual that does not mean the technology will be developed. The company has reported that this patent is part of the exploration of new ideas and should not be misconstrued as an expression of immediate implementation.

Ford has dabbled in personalised advertising before through a technology that would enable digital variations of signs to display on the windshield of a car for drivers as they drive by. But they are not alone in that. General Motors and many others have experimented with similar technology, which suggests an entire shift toward data-driven, personalised in-car experience.

The Dynamic Between Innovation and Privacy

While exciting with great potential in applications such as tailored navigation or real-time traffic updates, personalised in-car technology should be balanced with strong protections of privacy. Ability for drivers to opt out of data collection and advertising are all crucial to maintaining user trust.

There are several concerns that must be grappled with as this technology continues to evolve:

1. Transparency: Drivers should be told what data is being collected and for what purpose. There must be options that are clear for the users to control or opt-out from such collection of data.

2. Data Security: As more personal data is collected, robust security measures are crucial to protect against unauthorised access or breaches.

3. Regulatory Oversight: Governments may have to evolve and make clearer regulations about how the data of drivers is collected, used, and secured in order to help better protect consumer privacy.

Essentially, as such innovations promise convenience with personalised advertising, it is similarly very important to balance these innovations with necessary protective layers on the side of privacy. Car manufacturers will have to ensure that new technologies improve the driving experience without derailing user trust.


Premiums Affected as Internet-Connected Cars Share Data with Insurers

 


All kinds of popular features, such as in-car apps, remote functions, and even Wi-Fi hot spots, are available on most new vehicles that offer internet services. In addition to being a goldmine of data for automakers, these "connected" cars can also serve as a goldmine for insurance companies as well. An article published in the New York Times this week discussed the extent to which tracking driver information can affect insurance rates, as well as how it may affect driver insurance rates. 

The insurance industry has in recent years provided incentives to consumers who install dongles in their cars or download smartphone apps that allow them to monitor a variety of things, including how much they drive, how fast they turn corners, how hard they hit the brakes, and whether or not they speed when driving. 

A patent application by Ford Motor describes how “drivers are traditionally reluctant to participate in such programs,” but instead, car companies are collecting information directly from internet-connected vehicles for use by insurance companies. This is the opposite of what's happening now. As far as tracking users' driving data regarding car insurance adjustments is concerned, it is not a new concept at all. 

If users prove that they are good drivers, they can often reduce their insurance premiums, normally by letting their insurance company track users' vehicle data such as trips taken, speeds, distance driven, etc. This is a way that the insurer will be able to lower users' premiums. Certainly, there is a significant difference between tracking of that type and what is emerging about the Smart Driver from General Motors. 

There are a lot of direct insurer tracking programs that help consumers save money on their bills, but Smart Driver is not a user's typical tracking program, most of its users are not knowingly entering into such an agreement seeking savings; in Smart Driver's case, as well as the way data is transmitted to insurers, the consent is not nearly as clear as it might seem. GM's "connected" services, OnStar Smart Driver, are known to share driver data with other auto manufacturers. 

According to Car and Driver, it was not surprising that other automakers also had a similar data-sharing program. The idea is fine when automakers effectively notify consumers that their data will be tracked and shared with others. A usage-based insurance policy entails that the insurance company monitors the behaviour of the driver to determine the best policy. 

There is a problem with the growing number of internet-connected vehicles that share the personal information of their drivers without these drivers even being aware that they have consented to this practice. Kenn Dahl says he has always been able to drive safely because he was careful as a child. In addition to driving a leased Chevrolet Bolt, he owns a software company near Seattle and owns one of its employees. Neither he nor anyone else in his family has a history of causing accidents. 

The cost of his auto insurance shot up by 21% in 2022, and Mr Dahl, 65, was shocked when he received a bill for a hike of such proportion. It was also not uncommon to receive high insurance quotes from other insurers as well. The insurer told him it was the LexisNexis report that he had on file that was a contributory factor.

It is important to understand that LexisNexis is a global data broker with a stake in the insurance and auto insurance industries and is known for keeping tabs on traffic accidents and speeding tickets in the automobile industry. LexisNexis sent Mr. Dahl his 258-page "consumer disclosure report" at his request as per the Fair Credit Reporting Act, which it is required to provide to customers under the law. 

Typically, someone will agree to the terms of service when they install or update an app on their smartphone, but they need to read the fine print before accepting these terms before installing or updating the app on their smartphone. Even though consumers are advised to carefully read contracts before agreeing to them, there is also a powerful argument that corporations must be transparent as to how and when their personal information is going to be shared with others.

This is why the California Privacy Protection Agency (CPPA) has enlisted the help of its Enforcement Division to investigate how and to what extent automobiles equipped with features such as location sharing, smartphone integration, web-based entertainment, and cameras could collect and share consumer data with others, according to a report from Reuters. 

The apprehension echoed by the US Department of Commerce regarding the prospective national security threats posed by Chinese electric vehicles (EVs) finds a parallel in the contemporary discourse surrounding the management of data about driving behaviour in "connected" automobiles.

Individuals keen on understanding the handling of such data by their vehicles are advised to diligently examine the privacy policies associated with any car applications they utilize. Additionally, consumers may avail themselves of consumer disclosure reports provided by LexisNexis, as mandated by the Fair Credit Reporting Act overseen by the Federal Trade Commission.