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Toyota Data Privacy Lawsuit Highlights Car Companies' Data Practices

Toyota faces a class‑action over alleged illegal sharing of driver data. The case underscores broader privacy issues with modern connected cars and recent FTC actions against GM.
26 January 2026 by
TechStora Editorial Board

Background of the Lawsuit

Siefke discovered that his Toyota app showed he had opted out of data sharing, but Toyota claimed he had agreed to terms that allowed sharing driving data with third parties.

When he tried to opt out on Progressive’s website, he was told the insurer already had his driving data, including a hard‑braking incident from the previous day.

Legal Claims

Siefke filed a class action in April 2025 alleging violations of the federal Wiretap Act, the Computer Fraud and Abuse Act, breach of contract, unjust enrichment, and invasion of privacy.

He argues that drivers have a reasonable expectation of privacy in their driving habits and that Toyota’s sale of that data is contrary to customers’ interests.

Industry‑Wide Data Concerns

Other manufacturers face similar accusations. In January 2026 the FTC banned General Motors from selling customer driving records for five years, finding the Smart Driver program’s data‑collection policies were unclear.

Senators in Oregon and Massachusetts have urged the FTC to investigate Honda and Hyundai. The Texas Attorney General opened an investigation into car makers’ data collection and sale.

  • FTC found GM sold driving behavior data to insurers.
  • Investigations suggest driver data can be sold for as little as 26 cents.
  • Mozilla’s 2023 study of 25 car companies found none met its privacy standards.

Implications for Consumers

The lawsuit brings attention to the privacy nightmare of modern connected driving and raises questions about how much personal data car companies collect and share without clear consent.