Cars are becoming more connected. And with that comes challenges around how this new technology works.

Plus, the need for effective and auditable solutions to meet growing regulatory requirements around connectivity technnology to protect consumers has never been higher.

That’s why Calgary-based digital marketplace HeyAuto has entered into a multi-year, exclusive distribution deal with vehicle data privacy company Privacy4Cars.

Atlanta-based Privacy4Cars is a privacy-tech company focused on identifying the challenges posed by vehicle data and creating solutions to better protect consumers.

Car technologies like connectivity solutions are constantly gathering data about consumers when they use them. This data includes driving behavior and patterns, driving activity, routes and more.

Vehicle technology is all meant to improve the driving experience, yes. But often it is also illegally accessed by digital hackers and other unauthorized parties.

HeyAuto and Privacy4Cars said they will provide ongoing software solutions “dedicated to personal data privacy for vehicle owners.”

HeyAuto will be offering the Privacy4Cars solution to all Canadian dealers through the partnership.

Dealers are trying hard to find the right tools to remain in compliance with consumer laws and regulations. Through the partnership, HeyAuto’s dealers will be able to reduce business risk when personal data is involved.

Auto Remarketing Canada spoke with Andrea Amico, founder and CEO of Privacy4Cars to discuss today’s data challenges for the automotive industry, as well as details of the new partnership. Brett Jones, president of HeyAuto, also provided his insight on how privacy solutions can help dealers remain compliant and provide their customers with the best privacy protection they can.

Personal information can be left behind in vehicles after they are traded in or sold. It is up to the dealership to clear this consumer information from vehicles before they leave the lot.

There is increasing regulatory attention related to consumers in the Canadian auto industry, and many dealerships are “scrambling” to find the tools needed to fall into compliance.

Dealers in Canada have to be particularly careful when it comes to compliance and consumer privacy protection laws. According to Amico, Canada is much stricter when it comes to keeping their citizens’ data safe and sound.

“The main difference is that Canada has had privacy laws in place for a very long time. It’s a lot more similar in terms of infrastructure to Europe … We've been talking about  this for 15 to 20 years,” Amico said.

Jones also gave Auto Remarketing Canada some color on how the partnership came about and why it is a “perfect fit.”

HeyAuto focuses on micro-issues within the auto industry to provide more value, stay better connected and give a little bit more transparency to the ownership journey for consumers.

“It relates to their relationship with the dealership,” Jones said. “We came across Privacy4Cars, and we saw a tremendous amount of value in the product that they were offering to consumers and dealers alike.

“And we thought it was a natural fit to bring this technology up into the Canadian dealer market and allow our dealers to have a way to clear data from the vehicles for their consumers to add some value,” he said.

HeyAuto provides a utility solution for the backend of operations to help dealers stay connected and consumers to dealers, through a product called GloveBox, which is where the Privacy4Cars solution will be integrated into the HeyAuto system.

“We have the infrastructure and the technology stack able to distribute this type of technology really seamlessly all the way through, protecting both the data of the consumer and the dealer,” Jones said. “So, it was natural for us.”

Amico said that before this partnership, Privacy4Cars had mainly played in the wholesale market in Canada. The company was exploring options on how to expand into the dealership.

“So we saw an opportunity here to try to find a way to not only enter in the dealership market, but also create a connection and a value for consumers that is increasing and protecting their privacy.,” said Amico. “And they're (HeyAuto team), you know, great people, great technology, with a great customer base.”

How does it work?

“There’s nobody else as far as we know that is really trying to create a suite of services and protections for consumers and businesses alike,” said Amico. “That center on the data collected by today’s vehicles. Our customers rely on us to delete that data that is captured when you drive your vehicle and connect with your phone.”

Jones said for HeyAuto, privacy is paramount. And now dealers can store vehicle and consumer information in the GloveBox tool that has been secured, so they don’t have to worry about that data going anywhere else. Privacy4Cars will take care of this directly within the HeyAuto platform.

“Our process by tying this technology into our system is to have that validation layer, complete to provide data privacy for not only the dealer, but the owner of the vehicle as well,” Jones said. Available in the dealers’ GloveBox is a document stating for the consumer that the dealership will delete their data.

Amico said, “Wouldn’t you rather go to a dealership where this is recognized and confirmed, rather than a store that says they do it, but doesn’t provide any proof? The tool provides transparency and options to consumers, so they're increased so that they can protect themselves.”

‘It’s all about education’

Jones said it’s still surprising how many people, for example, unplug their phone and think they are OK in terms of data security.

“The thing is there's multiple computers that store that phone data in their databases, and breaches are happening more often right now, getting access to that information. It's so much easier than it has ever been,” Jones said. “We want it to be an educational thing for both customers and dealers. To say there is a problem, explain there is a solution to it, and it’s something that can protect everyone.”

Feedback from the recent news from the Privacy4Cars and HeyAuto partnership shows most dealers don’t realize what compliance and liability threats loom if consumer data protection is not taken into account and implemented.

This applies to individual dealers, rental companies, government vehicles, fleet vehicles and more.

There's a certain amount of risk there, especially for these newer vehicles that feature more technology than older models. 

“They're (consumers) plugging in their applications, plugging into their vehicles,” said Amico. “This is something that at every other level is a major issue, but it hasn't been really focused until now on the automotive side.” 

The rise of importance in vehicle history reports can be compared to the new focus on privacy. We’ve been taught not to buy a vehicle without looking at the vehicle history report.

“It’s (privacy efforts) not punitive to dealers. It's a positive thing,” Jones said. “We know that our dealers care very much about their services, and they want to provide all the value that they can long-term, while also making sure consumers are protected.”

Using a solution like Privacy4Cars can help dealers looking to stand out from other dealership in their respective areas.

According to Amico, part of his company’s communication to potential dealer clients is that they can help them understand what data is actually there. And how do you use your superior compliance and privacy technology to enhance your reputation? Amico encourages dealers to use data privacy processes as a marketing technique.

Jones said, “Dealers are increasingly more attuned to the fact that they have a lot of consumer data. But there are still a wide swath of dealers that do not understand that their largest database of consumer data they have is actually unencrypted and it's up for sale.”

This is why he says his company always tells dealers to sell cars, not consumer data.

“And if you manage to communicate what you already would've to for legal compliance in a way that makes sense to consumers, you actually get to get the benefit of showing that by doing the right thing, you are the right business to do business with,” Jones said.

The two executives also explored how vehicle technology will evolve in coming years, and how this impacts consumer data and privacy laws.

“Technology has delivered a lot of great things in automotive, with new features and convenience, but unfortunately the auto industry is still behind when it comes to data security and especially privacy protection,” said Amico. “So I think that as time passes,  we'll find more and more opportunities to create solutions for both consumers and automotive industry players to deliver value through privacy.”

Amico offered the iPhone as an example of how important privacy is for consumers today. Apple spends over $2 billion a year telling people to buy their phone because it’s basically impossible to hack.

“Nobody has done that in automotive yet, and that's what we're trying to do,” Amico said.