Connected cars are the way of the future, but who owns the data, and how can user privacy be protected?
The relationship between dealers and manufacturers and data sharing is becoming increasingly complex as the technology shifts towards connected cars and concerns about security.
In January, the Canadian Automobile Dealers Association (CADA) published an in-depth report entitled A Dealer’s Guide to Data and Data Sharing, following up on Driving the Road Ahead, a report that included information on recognizing the importance of data and data sharing, cybersecurity and privacy.
A Dealer’s Guide to Data and Data Sharing included more than 100 pages of information on what dealers needed to watch out for to comply with Canada’s Anti-Spam Legislation (CASL), announced by the Canadian Radio-television and Telecommunications Commission last July.
In September, CADA provided its members with a comprehensive list of Automotive Ecosystem Data Sharing Principles developed by the National Automobile Dealers Association in July. CADA noted today’s automotive manufacturing and retailing require the complicated and critical integration of information systems and the sharing of data between dealer systems, OEM systems and the vehicles themselves.
The five principles outlined in the document include:
- Data is only shared pursuant to clear, compliant, written data agreements;
- Data is only shared securely;
- Data is only shared with clear accountability and protection;
- Data is only shared with third parties in a transparent and compliant manner; and
- Dealers and oems agree to establish an ongoing structure to continue working together.
And yet it was noted that while every effort has been made to ensure the accuracy and timeliness of these data sharing principles, they are of “a general nature” because the nature of data sharing is ever-changing as are the various practices, regulations and forms of risk associated with it.
It further stated that given the complexity of the individual circumstances at each dealership, and differences in law depending on the location of the dealership and customer base, the data sharing principles are not intended as legal or other professional advice, and should not be construed as such.
In an interview with Canadian auto dealer, CADA President & CEO, Tim Reuss said, “Yes, they can’t be rules, but they are strong recommendations and we’ve already seen in the jurisdictions south of us that if taken seriously by dealers and manufacturers they can actually result in fairly positive outcomes.”
So, at best data sharing can be defined as a broad, and perhaps, muddled, frontier.
Michael Crosby, Dealer Principal of Crosby Auto Group, which operates four stores in Southwest Ontario, said there is a lot to be navigated with data, specifically what can and can’t be shared by dealers with vendors and manufacturers.
He said the importance of data sharing agreements is spelling out responsibility, liability, protection and information concerns and the dividing lines.
“They are critical legal documents,” said Crosby. “Outside of a dealer agreement governing the relationship between the manufacturer and expectations with a dealer, data sharing is probably right up next to it.
“Every brand has data sharing agreements, some of them are more current than others, and they can date and age very quickly. When this topic initially came up 12-14 years ago, some manufacturers brought out some data sharing agreements that are very basic. A lot of them have to get re-done and worked and that’s a process between the manufacturers usually working through their dealer counsels and legal and everything else. It’s quite a complex thing.”
He said security and data breaches are probably the number one concern of consumers.
“I’ve heard of dealerships with ransom software being held for money to have access to their systems and their data,” said Crosby. “Certainly a breach would be the worst-case scenario where somebody has access to stolen information. That’s where the security and integrity of your system, as well as dealing with the manufacturer and the link between the two, is critically important.”
Don Romano, President of Hyundai Canada, said there is a lot of discussion surrounding data sharing and little discussion regarding the specifics of the data. He said with the advent of the connected car, the amount and sensitivity of data changes dramatically.
“We must find ways to enable our dealers to access and leverage all the data we collect without compromising customer security and privacy,” said Romano. “To this end, the conversation should be less about data sharing and more about data security and data access. We should be discussing how data is accessed and used by manufacturers and dealers, and less about who controls it.”
