Navigating the Data Privacy Landscape for Autonomous and Connected Vehicles: Best Practices

Autonomous and connected vehicles, and the data they collect, process and store, create high demands for strong data privacy and security policies. Accordingly, in-house counsel must define holistic data privacy best practices for consumer and B2B autonomous vehicles that balance compliance, safety, consumer protections and opportunities for commercial success against a patchwork of federal and state regulations.

Understanding key best practices related to the collection, use, storage and disposal of data will help in-house counsel frame balanced data privacy policies for autonomous vehicles and consumers. This is the inaugural article in our series on privacy policy best practices related to:

  1. Data collection

  2. Data privacy

  3. Data security

  4. Monetizing data

Autonomous and Connected Vehicles: Data Protection and Privacy Issues

The spirit of America is tightly intertwined with the concept of personal liberty, including freedom to jump in a car and go… wherever the road takes you. As the famous song claims, you can “get your kicks on Route 66.” But today you don’t just get your kicks. You also get terabytes of data on where you went, when you left and arrived, how fast you traveled to get there, and more.

Today’s connected and semi-autonomous vehicles are actively collecting 100x more data than a personal smartphone, precipitating a revolution that will drive changes not just to automotive manufacturing, but to our culture, economy, infrastructure, legal and regulatory landscapes.

As our cars are becoming computers, the volume and specificity of data collected continues to grow. The future is now. Or at least, very near. Global management consultant McKinsey estimates “full autonomy with Level 5 technology—operating anytime, anywhere” as soon as the next decade.

This near-term future isn’t only for consumer automobiles and ride-sharing robo taxis. B2B industries, including logistics and delivery, agriculture, mining, waste management and more are pursuing connected and autonomous vehicle deployments.

In-house counsel must balance evolving regulations at the federal and state level, as well as consider cross-border and international regulations for global technologies. In the United States, the Federal Trade Commission (FTC) is the regulatory agency governing data privacy, alongside individual states that are developing their own regulations, with the California Consumer Privacy Act (CCPA) leading the way. Virginia and Colorado have new laws coming into effect in 2022, the California Privacy Rights Act comes into effect in 2023, and a half dozen more states are expected to enact new privacy legislation in the near future.

While federal and state regulations continue to evolve, mobility companies in the consumer and B2B mobility sectors need to make decisions today about their own data privacy and security policies in order to optimize compliance and consumer protection with opportunities for commercial success.

Understanding Types of Connected and Autonomous Vehicles

Autonomous, semi-autonomous, self-driving, connected and networked cars; in this developing category, these descriptions are often used interchangeably in leading business and industry publications. B2B International defines “connected vehicles (CVs) [as those that] use the latest technology to communicate with each other and the world around them” whereas “autonomous vehicles (AVs)… are capable of recognizing their environment via the use of on-board sensors and global positioning systems in order to navigate with little or no human input. Examples of autonomous vehicle technology already in action in many modern cars include self-parking and auto-collision avoidance systems.”

But SAE International and the National Highway Traffic Safety Administration (NHTSA) go further, defining five levels of automation in self-driving cars.

Levels of Driving Automation™ in Self-Driving Cars

 

 

Level 3 and above autonomous driving is getting closer to reality every day because of an array of technologies, including: sensors, radar, sonar, lidar, biometrics, artificial intelligence and advanced computing power.

Approaching a Data Privacy Policy for Connected and Autonomous Vehicles

Because the mobility tech ecosystem is so dynamic, many companies, though well intentioned, inadvertently start with insufficient data privacy and security policies for their autonomous vehicle technology. The focus for these early and second stage companies is on bringing a product to market and, when sales accelerate, there is an urgent need to ensure their data privacy policies are comprehensive and compliant.

Whether companies are drafting initial policies or revising existing ones, there are general data principles that can guide policy development across the lifecycle of data:

Collect

Use

Store

Dispose

Only collect the data you need

Only use data for the reason you informed the consumer

Ensure reasonable data security protections are in place

Dispose the data when it’s no longer needed

Additionally, for many companies, framing autonomous and connected vehicle data protection and privacy issues through a safety lens can help determine the optimal approach to constructing policies that support the goals of the business while satisfying federal and state regulations.

For example, a company that monitors driver alertness (critical for safety in today’s Level 2 AV environment) through biometrics is, by design, collecting data on each driver who uses the car. This scenario clearly supports vehicle and driver safety while at the same time implicates U.S. data privacy law.

In the emerging regulatory landscape, in-house counsel will continue to be challenged to balance safety and privacy. Biometrics will become even more prevalent in connection to identification and authentication, along with other driver-monitoring technologies for all connected and autonomous vehicles, but particularly in relation to commercial fleet deployments.

Developing Best Practices for Data Privacy Policies

In-house counsel at autonomous vehicle companies are responsible for constructing their company’s data privacy and security policies. Best practices should be set around:

  • What data to collect and when

  • How collected data will be used

  • How to store collected data securely

  • Data ownership and monetization

Today, the CCPA sets the standard for rigorous consumer protections related to data ownership and privacy. However, in this evolving space, counsel will need to monitor and adjust their company’s practices and policies to comply with new regulations as they continue to develop in the U.S. and countries around the world.

Keeping best practices related to the collection, use, storage and disposal of data in mind will help in-house counsel construct policies that balance consumer protections with safety and the commercial goals of their organizations.

A parting consideration may be opportunistic, if extralegal: companies that choose to advocate strongly for customer protections may be afforded a powerful, positive opportunity to position themselves as responsible corporate citizens.

© 2022 Varnum LLP
For more articles about transportation, visit the NLR Public Services, Infrastructure, Transportation section.

Will Louisiana’s New Laws for Self-Driving Delivery Devices Prevent Accidents?

Retail chains, grocery stores, and restaurants have been actively developing methods to deliver products faster. With inventions like self-driving cars and drones, it was only a matter of time before delivery services took advantage. But with any new technology comes safety concerns.

Republican Sen. Rick Ward sponsored a new bill to outline how driverless delivery devices are allowed to operate on Louisiana streets. Governor John Bel Edwards signed the bill and it went into effect immediately. With these new laws in place, Louisiana lawmakers hope to keep motorists and pedestrians safe as they share travel alongside self-driving delivery devices.

Self-Driving Technology

Self-driving cars have been in the works since the 1920s. Carnegie Mellon University’s Navlab and ALV projects built a computer-controlled vehicle in 1984. Since then autonomous technology has expanded to other devices to serve various markets.

Autonomous Cars

When most people think of self-driving technology, they think of autonomous cars. This type of self-driving machine can go long distances and carry larger cargo. Autonomous cars typically transport people while vans may transport smaller self-driving bots.

Surprisingly, the largest safety risk posed to autonomous cars is human unpredictability. The vehicles are programmed to obey strict safety guidelines along with the rules of the road. In theory, that should be adequate to ensure safety. In reality, these vehicles are bullied by human motorists who drive aggressively.

Drones

The first modern drone was developed in 1935. These small, unmanned aircrafts transformed from military equipment to personal aerial cameras. In June 2021, Kroger became the next company to utilize self-driving devices by launching their first drone flight to deliver groceries.

Airborne drones can fly over traffic jams or obstructions. This would allow them to make deliveries in rural areas that traditional delivery trucks cannot reach. Potential complications arise from privacy issues and Federal Aviation Administration (FAA) regulations.

Last-Mile Bots

Last-mile bots, also known as ground drones, are typically small robots that travel short distances. They may cross streets but otherwise tend to remain on sidewalks as they complete a delivery’s last leg of the journey. These robots are designed to navigate sleep inclines, curbs, and unpaved surfaces.

The biggest limitation of last-mile bots is the size and weight of the deliveries they can carry. Severe weather may also pose challenges. Companies like DoorDash and Postmates successfully use last-mile bots to make multiple short deliveries that delivery drivers typically don’t want to accept.

Louisiana’s New Laws for Self-Driving Delivery Devices

As new technologies emerge, so do new laws to govern their usage. Under Louisiana’s Senate Bill 147, self-driving delivery devices must move at low speeds. They cannot exceed 20 miles per hour. They are limited to 12 miles per hour in pedestrian areas, which is roughly the speed of a person jogging.

These autonomous delivery robots must yield to pedestrians. They cannot obstruct the flow of traffic. They must also be equipped with lights on the front and rear.

The companies utilizing robot delivery must ensure each vehicle carries at least $100,000 insurance coverage. Additionally, these devices are not permitted to transport hazardous materials.

Are Self-Driving Delivery Devices Safe?

Due to the high standards of robotics developers, driverless vehicles are generally safer than cars with human drivers. Safety is paramount, since according to a car accident lawyer in New Orleans, nearly 14% of Louisiana drivers don’t have auto insurance.

Louisiana’s new laws aim to prevent accidents both to motorists and pedestrians. Multiple states have passed similar legislation to protect people sharing space with these vehicles. However, Louisiana’s bill permits governing officials and airport authorities to establish additional laws or ban self-driving delivery devices if they pose a danger to public safety in the future.

Who Is Liable When a Self-Driving Delivery Vehicle Causes an Accident?

At this time, no delivery vehicles that are 100% automated are in use, so there are no laws or regulations to determine who would be liable in an accident. However, if there were an accident involving a self-driving delivery vehicle and it could be proven that the vehicle’s operators were negligent, in theory, they would be legally liable.

There are several ways a company’s negligence could lead to an accident. For example, they could fail to maintain the vehicle or to perform critical software updates. Just as with any other type of vehicle on the road, self-driving delivery vehicles can and will get into accidents. When it happens, expect to see increased regulations and lawsuits.


© Laborde Earles Law Firm 2021

The Promise and Peril of Autonomous Vehicles

The possibility of self-driving cars on our roads is prompting both excitement and anxiety. Advocates point to the possibility of increased safety, lower pollution, even less congestion. Critics aren’t sold on many of the supposed advantages.

So, what happens when driverless vehicles start hitting our roads? As with so many innovations, there are likely to be pluses and minuses.

Let’s consider safety. The United States Department of Transportation estimates that roughly 95% of road accidents are caused by human mistakes; driving too fast for conditions, not paying attention to the road, or illegal maneuvers such as driving through red lights. Given human tendencies to get distracted, one would expect that autonomous vehicles will be safer.

Autonomous vehicles are outfitted with sensors and cameras, which enable them to “see” their surroundings and react to traffic and pedestrians. Companies working on these vehicles have been testing these vehicles in simulated settings as well as on real roads. There is much to tout about their safety aspects: they’re not distracted like humans, they obey speed limits and traffic signs, they don’t drive fatigued.

But driving in traffic has turned out to be more challenging than expected, and a few well-publicized accidents – one involving a Tesla and one an Uber vehicle that killed a pedestrian – have prompted concerns the self-driving technology is not ready for prime time. In particular, that sensors and cameras may not be able to react in real-time to cope with humans who behave like, well, humans.

More choices or less?

“We’re moving to a future where people don’t own cars,” says Dr. Daniel Sperling, director of the Institute of Transportation Studies at the University of California, Davis. “You’ll have a subscription service, maybe, that emphasizes smaller vehicles, or you might want a cheaper service where it’s a van,” he adds.

Dr. Alain Kornhauser, director of the program in transportation at Princeton University, agrees to a point, saying privately owned cars are not likely to vanish completely — especially in rural areas, where getting a driverless taxi may be more challenging. Still, he says, the number of people who own cars — and the number of cars owned per family — will drop sharply.

In many cities with ridesharing services like Lyft or Uber, owning a vehicle has become less urgent. Autonomous vehicles could multiply ridesharing options.

But what if you’re in a rural area without these services? Should rural communities consider investing in self-driving vehicles as a form of public transport? What if you’re in a major city but can’t afford to either own an autonomous vehicle or even subscribe to the service?

There’s also the question of what happens to public transport as self-driving vehicles increase. Will we continue to support and improve the infrastructure for public transportation?

Public transport systems in the U.S. are not as robust as in some European nations. One of the main concerns for Seleta Reynolds, General Manager of Department of Transportation for Los Angeles, is managing access for people in different parts of Los Angeles because she understands how much that can impact one’s financial well-being.

“You can get to about 12 times as many jobs in an hour in a car as you can by transit in L.A.,” she said.

If autonomous vehicles end up reducing access, the financial and social impact could ripple across communities.

Then there is the question of what autonomous vehicles will do to people who drive for a living. According to the U.S. Bureau of Labor Statistics, more than 2.5 million people earn their living from driving – employed as tractor-trailer truck drivers, taxi and delivery drivers, and as bus drivers. If those jobs disappear, that could represent a potential loss of employment equal to what we saw during the Great Recession of 2008.

Many of the people driving vehicles for a living are classified as low-skilled workers. It will be difficult for such unemployed workers to quickly find new work, and the cost of re-training them could be high.

Autonomous vehicles have the potential to spur a massive and exciting paradigm shift. But there are darker clouds on the horizon too. The question is: will we be able to manage the changes wrought by self-driving vehicles in a positive way?


Copyright © 2020 Godfrey & Kahn S.C.

For more on autonomous vehicle developments, see the National Law Review Utilities & Transport Law section.