Recent data privacy court cases in the USA involving HTC and Microsoft have highlighted the legal sensitivities of tracking the location of consumers. The issues of data privacy and consumer agreement to be tracked are becoming more important in the automotive arena as the Connected Car enters the mainstream.

Both HTC and Microsoft have both been sued by consumers in the USA after allegations that their mobile phones track the location of users even after they request that the software is switched off. The cases cover the HTC Sensation and Evo 3D smartphones and the Microsoft Windows Phone 7.

“Vehicle manufacturers are becoming increasingly aware of their personal data privacy responsibilities related to OE telematics services,” says Stephen Longden, author of SBD’s new report Connected Car Guide ~ government edition. “Concerns over data privacy are being voiced by consumer groups and this is shaping government legislation in both Europe and the USA,” he adds.

In June 2011 a New York Times article criticised the data security measures used in the Nissan Leaf Carwings telematics service. The article claimed that the Carwings telematics service is insecure and details of the location and movement of individual vehicles could be accessed without permission.

HTC has defended its privacy policy by saying that consumers have to “opt-in” to allow the phone to collect data on the position of the phone. The Taiwanese manufacturer says the data is made anonymous and encrypted. Microsoft has not commented on its case.

The issue promises to get more interesting as vehicle manufacturers try to strike the right balance between providing connected services and maintaining data privacy. SBD’s Connected Car Guide ~ government edition is an interactive guide that gives you up to date information on the legislation that is active in each region and what it means to your business. Contact Alessio at ABallatore@sbd.co.uk to learn more about this report.