Data battle moves to statehouses

Disputes in two state governments highlight a growing controversy in the auto industry over the data that Internet-connected cars can produce and process.

In Massachusetts, the debate focuses on a proposed amendment to a state "right to repair" law and differences over data access between automakers and aftermarket providers.

In California, a broad new privacy law does not explicitly center on the automaker-vs.-aftermarket argument, lawyers for both sides agree. But the law includes mandates for automakers about how they collect and handle vehicle data.

Even though the California law passed in 2018, the state is still developing rules for enforcing it. California Attorney General Xavier Becerra's office has until July 1, 2020, to adopt the regulations. Becerra published proposed rules in October, launching a public comment period.

The California law requires businesses to "disclose data collection and sharing practices to consumers," Becerra's office says. "Consumers have a right to request that their data be deleted. Consumers have a right to opt out of the sale or sharing of their personal information. And businesses are prohibited from selling personal information of consumers under the age of 16 without explicit consent."

The California State Legislature has approved amendments to the law that affect automakers and dealers. The key change permits automakers and dealers to keep and share vehicle data exclusively for purposes of a warranty or recall-related repair — even if a consumer has asked for the data's deletion — as long as the data isn't sold against the consumer's wishes.

Brian Maas, president of the California New Car Dealers Association, says the association "fought hard" to secure the enactment of the warranty exception.

"Protecting consumer data, while simultaneously ensuring warranty and recall-related vehicle information can be shared between dealers and OEMs, is vital to protecting vehicle safety," Maas told Automotive News.

Massachusetts' "right to repair" law, enacted in 2013, mandates that vehicle owners and independent repair facilities in the state have access to the same diagnostic and repair information that automakers make available to their dealerships and certified repair facilities.

Groups that represent the automotive aftermarket industry are lobbying for an amendment to the original law that would add new requirements for aftermarket access to data.

Bill Hanvey, president of the Auto Care Association, says the law doesn't provide sufficient access to telematics data that aftermarket providers insist they need to make proper and safe repairs to high-tech components.

A version of the proposed digital amendment would authorize independent repair providers to file a complaint with an automaker over data access.

If there is no agreement within 30 days, a provider could sue the automker for failing to provide "information, including documentation, updates to firmware, safety and security corrections, diagnostics ... or a tool required" by the amendment.

Two Washington-based groups that represent automakers counter that the Massachusetts law gives the aftermarket sufficient access to data, says Conor Yunits, a Boston-based consultant. Digital "information is already covered by this law and already required to be provided," Yunits told Automotive News.

The Auto Care Association responds that the current law requires carmakers to provide access to data only under limited circumstances.

In practice, the law as it stands "would provide a strong competitive advantage to the manufacturers at the expense of repair shops and their customers, car owners, by raising costs and increasing the hurdles for access to key data needed to repair late-model vehicles," says Aaron Lowe, the association's senior vice president of regulatory and government affairs.