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  • Will increasing regulations around “black boxes” lead to new rules for telematics?

    June 29th, 2005

    The U.S. Government is increasingly looking at requiring that the black boxes in autos collect more and more data. As telematics is beginning to reach substantial numbers in the market, it is realistic to assume that the industry will see regulations (of some type) on the data that telematics service providers must monitor/store/provide.

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    The government plans to release new rules for controversial car black boxes this summer, according to a spokesman for the National Highway Traffic Safety Administration.

    Contrary to expectations, the rules don’t require automakers to install the boxes in every car, but they do require the boxes to record a minimum of 29 pieces of data, more than most black boxes currently record.

    In a nod to privacy concerns, the rules require automakers to disclose in the owner’s manual when a car has a black box and why it’s there. But privacy advocates say they’re disappointed that the rules don’t limit the amount of data the boxes can record or address concerns about how recorded data can be collected or used.

    In New York this year, a defense attorney challenged the admissibility of information gleaned after police removed data from a defendant’s black box before obtaining a search warrant.

    A judge ruled, however, that the seizure was legal and that the driver had no reasonable expectation of privacy since he’d been on a public highway and exposed his driving behavior to anyone watching.

    “Essentially what (the NHTSA) has done is encourage more data collection without a corresponding increase or concern for privacy protection,” said Chris Hoofnagle, director of the Electronic Privacy Information Center’s West Coast office.

    EDRs were designed to help automakers build safer vehicles. But manufacturers have used the data to defend against product liability claims. Police investigators have also increasingly been using the data to charge drivers with speeding violations and serious crimes. And insurance companies want the data to dispute unwarranted claims and tie policy rates to driving behavior.

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