Ford’s Farley Backpedals After Customer Tracking Comment

Last week Ford Motor Co. marketing chief Jim Farley implied to a panel at the Consumer Electronics Show that Ford is using GPS to track the movement of its customers.

"We know everyone who breaks the law," Farley declared. "We know exactly when you do it, because we have GPS sensor in your car. We know where you are and how fast you're driving."

Farley later told BusinessInsider.com he left the wrong impression about how Ford operates. Describing his initial comment as "hypothetical," Farley added, "We do not track our customers in their cars without their approval or consent."

Ford also issued a statement acknowledging that Farley "made light of a very serious privacy issue." The company also says that no data is transmitted from the vehicle "without the customer's express consent first."

Critics say car owners, regardless of the brand they drive, automatically provide such consent simply by activating their in-car navigation system. A report last month from the U.S. Government Accountability Office says consumers may not understand what their consent means.

GAO analyzed the practices of the 10 biggest providers of in-car location-based telematics services in the U.S. The group included carmakers, portable navigation device makers and developers of map and navigation apps for mobile devices. The agency's conclusion: Service providers all disclose that they collect and share data, but virtually none does it in terms that clearly explain its reasons or exactly how the information is used.