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Your Car Could Be Spying on You

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Submitted By JeevesJesus
Words 1011
Pages 5
ASSIGNMENT: Your Car Could Be Spying on You
Article Summary
Moore's law is the observation that, over the history of computing hardware, the number of transistors on integrated circuits doubles approximately every two years. Likewise, the technology aboard vehicles has changed significantly over the past decade. As stated by George Takach, “Cars are becoming souped up smart-phones - and then some”. Currently, cars are built with an integrated computer and dozens of sensory tools which can alert the driver of mechanical failure. In the near future, cars may even be able to drive themselves. However, not all proposed technological improvements may be in the best interest of the consumer.
Using the same technology standardized by the Airline industry, a blackbox has been suggested for automobiles. The automobile version would track diagnostic data such as oil levels and engine temperature and also behavioral data, such as erratic driving (speeding) and seatbelt usage. One car manufacturer went as far as to suggest cameras recording on the inside and the outside of the vehicle. Implementing a blackbox also opens up a new stream of marketing which can target travelling consumers through on-board entertainment systems.
However, the idea of using a blackbox to track consumers becomes finicky when deciding who owns the data. To list a few contestants, there’s the car manufacturer, the car dealer, the maintenance provider, auto insurer and various third party organisations. The issue becomes more convoluted when deciding who can access the information. Potentially, a car insurance company could monitor a car's speed and usage to determine a more consistent pricing system. While some people may praise this new system, others are sure to be in uproar.
From a law-enforcement angle there are many concerns as well: what right do the police have to check your data for violations? Do they need a search warrant? Presumably, various services will depend upon agreements that will attempt to answer these questions. In turn, the consumer will give consent to ownership and usage for the data. Contractual approaches must be careful of breaching mandatory privacy law and consumer-protection rules. Before any blackboxes are to be used, issues like these need to be ironed out.

Consider the Law
The technology presented in these modern cars raises some issues as related to privacy, and use of data.
Federal statutes help govern the way citizens and organizations behave in a free democratic society. For example, the Personal Information Protection and Electronic Documents Act (PIPEDA) and The Privacy Act, along with similar provincial statutes, regulate the collection, use, disclosure, and disposal of personal information. It is imperative that companies who deal with customer’s personal information comply with the PIPEDA, and other similar statutes. Adherence to PIPEDA will protect a company from future litigation. In contrast, failure to conform to the standards set by the PIPEDA will result in action in court. Therefore, insurance companies who wish to utilize information provided by the blackbox must ensure that they have the right to view the information. An insurance company wrongfully using an individual’s personal information would likely lose in an action at court. This point can be illustrated by the finding in the Canada Safeway Limited v. Shineton case; in the case, the accused was found to wrongfully disclose personal information without consent. As stated in the article, there is an issue as to who actually owns the information provided by the blackbox. As a result, legally utilizing the information is challenging for insurance companies, as they may not have access to the information. To gain access to the information, a savvy insurance company would enter into a contract with an individual.
The data collected from these blackboxes would be very useful in accidents, claims and setting premiums. There will need to be a careful contract put in place so there is no confusion as to what the data is being used for. As this technology evolves there will be a need to modify the contract to ensure that the contract remains legally enforceable. In the event of a crime information will be accessible by police. In a civil proceeding, because of the lack of case law on the topic, it will depend on the judge whether the evidence is relevant.

Consider the Business
To better understand the impacts to business these technologies will have, we have chosen to take the stance of an insurance company.
The new data stream, consisting of driver behavior and video footage, will help our insurance company by allowing us to see who is at fault in car accidents and set clearer metrics for pricing. In many situations police and investigative reporters have difficulty building a consensus because their judgement is based off of personal account. With intelligent vehicles, we will be able to determine new aspects which can help solve accidents. This includes: the speed of the cars on impact, if the driver was distracted, whether or not safety precautions were taken... etc. Consequentially, we will be able to correctly distinguish who is liable and set premium rates based on driving performance. However, overly calculated pricing metrics can act as a double-edged sword. It is possible that our customer pool can shrink due to drivers, labeled as “erratic” leaving for other insurance companies who choose not to use this new data stream. Whether this is beneficial or not depends on how much our customer pool shrinks by. Furthermore, the transition from regular cars to intelligent cars may be a lengthy process. Many people will be reluctant to accept intelligent cars if their current vehicle has a lower insurance rate. The cost of using this data is that pricing in general will be lower than the current model. The reasonable compromise is that we offer the new pricing model as a separate program from the old model. Through careful consideration of the law and consumer rights we feel that this new technology will assist our business in the long run and provide a safer driving experience overall.

References
Yates, Richard
Legal fundamentals for Canadian business/Richard A. Yates.- 3rd ed.

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