S 5673: Car Privacy Rights Act of 2026

S 5673 in plain English: The Car Privacy Rights Act of 2026 would establish privacy protections for data collected by vehicles, regulating how automakers and related companies can collect, use, and share driver and passenger data. Courts could award damages of at least $5,000 per violation for breaches of these rights, adjusted annually for inflation.

Stated purpose

The bill aims to restrict car manufacturers and other companies from selling consumers' car-related data, and to require those companies to be more transparent about how they collect and use that data.

Key points

• Establishes privacy rights for data collected by cars and automakers
• Allows courts to award damages of at least $5,000 per violation for privacy breaches
• Damages are adjusted annually based on changes in the cost of living

Arguments supporters make

• Modern cars collect detailed location and driving data without most people realizing it, and this bill gives consumers real control over that personal information.
• Requiring clear, specific consent — not buried in long terms of service — means companies can no longer quietly profit from selling data drivers never knowingly agreed to share.
• Limiting data collection to what is actually needed for a service reduces the risk that sensitive location or behavioral data ends up with data brokers, insurers, or law enforcement without a driver's knowledge.

Arguments opponents make

• Restricting how manufacturers and insurers use driving data could block services consumers actually want, like usage-based insurance discounts or safety features that depend on shared data.
• The compliance burden of obtaining separate affirmative consent for each data use could be costly for companies, potentially raising vehicle prices or limiting innovation in connected-car technology.
• A federal law may set a floor that is harder to update than state-level privacy rules, and the definitions of covered data are broad enough that routine vehicle diagnostics or repair services could face unintended legal uncertainty.

Tradeoffs

Stronger individual privacy over driving and location data comes at the potential cost of limiting data-driven services and features that some consumers value; the bill also places new compliance obligations on a wide range of companies, which may reduce data sharing that supports certain safety or cost-saving programs.

Current status in Congress: In committee.

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