#528

Connected Car
Legislation GuideCON
TABLE OF CONTENTS
Introduction

Connected
Car

The connected car eco-system is evolving at a rapid pace. Today, legacy OEMs and suppliers are investigating
how to enhance their offering to satisfy ever-changing consumer demands. At the same time, new players including start-ups and consumer technology firms - are emerging who intend to explore opportunities toembed connectivity across the development, production, and user experience of their vehicles.

Bird’s Eye View
Executive Summary
The Basics

As new connected vehicles, systems, features, and applications have launched over time - governments andgoverning bodies have historically responded with a variety of legal and regulatory activity. In the present day,where dozens of OEMs are releasing and updating new connected systems at an increasingly frequent rate, itslegal landscape is becoming increasingly complex.

Analysis
Summary Tables

The Connected Car Legislation Guide works to define this landscape clearly across multiple regions andcountries around the world. In addition to identifying the active and developing legislation impacting connected
services, it understands how legislation can vary from region to region. For developing legislation, it assesses
how likely it is to be implemented and highlights its potential impacts. The guide is divided into three sections
that each cover a different aspect of connected car legislation and is released quarterly to account for any newactivity within the space.

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Key questions answered> What legislation is currently
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Connected Car Legislation Guide

Contents
528 Connected Car Legislation Guide
Introduction≫

4

Summary Tables ≫33▪ USA – Regulations/Legislations/Mandates

Bird’s Eye View

6

▪ USA – Guidelines & Best Practices▪ EU – Regulations/Legislations/Mandates

Executive summary≫

11

The Basics≫

15

Analysis≫20▪ EU – Guidelines & Best Practices▪ China – Regulations/Legislations/Mandates▪ China – Guidelines & Best Practices▪ Global – Regulations/Legislations/Mandates▪ Global – Guidelines & Best Practices▪ Explore▪ Digital Fair Repair Act▪ Data privacy (USA)▪ Distracted driving laws in (USA)▪ European AI Act

Next steps≫

45

Contact Us≫

49▪ Data protection bill (India)▪ Block exemption (EU/UK)▪ Internet of Vehicles (China)▪ Data privacy (South Korea)

Data Deep Dive

▪ EU guidelines on 5G development

View and analyze deep
data in your own way▪ USA guidelines on 5G development▪ Explore

Total number of pages - 49

Introduction

Introduction

Introduction
With more ‘connected’ cars rolling off the assembly line every passing
year, the automotive industry is facing regulatory hurdles previously seen
in other industries that have progressed along the technology adoption
lifecycle. The government bodies are increasingly taking note of the fast
pace this industry is growing and the issues (more importantly the impactof these issues) that prevail due to the very growth.
The major concerns include passenger safety, data privacy, liability,
intellectual property rights, cybersecurity, interoperability and access to
the wireless spectrum among others. Legislators and SMEs have started toproactively address these issues in ways that ensure consumer protection- but not at the expense of development. In short, the groundwork thatthe government bodies are undertaking must spur innovation and rapid
deployment rather than being an impediment in the progress.
The Connected Car Legislation Guide provides an inside look at thepolicy activities taking place across the globe. In doing so, it details thescope of these policies, identifies the various organizations responsible,
the legal status of bills and the timeline of activities. It also includes someperipheral legal aspects that may have a direct or indirect impact onconnected car development in the near-foreseeable future.

SectionContent

Bird’s Eye View

Overview of trends and insights relevant to the legislation guides
seriesExecutive
SummaryThis section highlights some of the recently enforced andintroduced regulations/legislations/guidelines

The Basics

A brief overview of the different type of legal aspects (regulation,
legislation, standards etc.) covered in this report along with theregions in focus.

Analysis

Key regulatory activities that are impacting the connected car
development and best practices published by the authorities

Summary Tables

Next Steps

6

Summarizing the legislative activities identified in the associatedExcel spreadsheet where some laws are seeing an increasing levelof activities and are nearing enforcement while some haven’t seen
the light of the day after being introduced and debated several
times.
Can SBD help you with any unanswered questions?

Note: This guide only highlights the actual regulatory activities and does notgive any recommendations. This guide's analytical and forward-looking
statements shouldn’t be construed as legal advice.
6

Example slides
from the report

Executive Summary

What? Snapshot of Key Regulatory/Legislative updates

Introduced*

China

No new legislations were introduced in the rest of the world recently (Q1 2024)

Draft C-NCAP evaluation protocol has been formulated in three years, C-V2X systems
are also included in scope though it is not yet clear how much weightage they would
carry on the overall score

EuropeGlobalLegislation/Regulations recently introduced

Regulations (EC) No 715/2007 and (EC) No 595/2009
This concerns type-approval of motor vehicles and engines and of systems,
components and separate technical units intended for such vehicles, with respect totheir emissions and battery durability (Euro 7)

Enforced/Published**

Legislation/Regulations recently enforced
No new legislations were enforced in the rest of the world recently (Q1 2024)
Shen Gong Xin [2023] No. 292
Aims to promote the comprehensive integration of vehicles and transportation,energy, support digital transformation and to create a leading multi-for infrastructure
system.
Chongqing Economics and Telematics Regulation [2023] No.18
It proposes that intelligent networked vehicle manufacturers that meet the conditions
for pilot application should have design verification capability, safety guarantee
capability, safety monitoring capability and user notification mechanism
Directive (EU) 2023/2661
The directive concerns the structure for implementing Intelligent Transport Systems
within road transportation and their integration with other transportation modes(approved as of December 2023)

USA

Legislation to protect the privacy of 911 callers (HB 4323 MA)
Massachusetts General Laws amends 911 recording retention to a minimum of 1
year. Audio recordings are confidential but accessible under specific circumstances,with violations punishable by a fine up to $1,000. Transcripts are public records.

8

Motor Vehicle Consumer Data Protection (SB 215 UT)
SB 215 establishes regulations concerning the protection of consumer data in the
motor vehicle industry.

No new legislations were enforced in the US (Q1 2024)

US examines data security risks from imported Chinese connected cars
*In some regions (primarily outside the US) the word ‘issued’, ‘proposed’ are used for the legislations instead of introduced**Standards and Guidelines/Best Practices are often not enforceable by law. They are introduced and reviewed by the subject experts before being published.

8

Data privacy (USA)

Analysis

US ramps up data privacy regulatory development, no federal law yet
StatusLegislation Overview

Introduced

Draft

PassedModern connected cars can produce a significant amount of data in communicating with infrastructure and other technologies via the cloud. As the industry
develops in coming years, the automotive industry is expected to be one of the largest data intensive sectors. Such data may include information about thevehicle, personal details of the driver, biometrics, driving habits, locations visited, engine performance etc. Given the sensitivity and personal nature of somedata, connected cars may fall under the purview of any ‘Data Privacy’ rules specific to that country. In the US, data privacy is a high-profile area for legislation.
Many consumers are very protective of their data privacy, and this has an impact on the design of connected car services.

What’s New?

Details
State

Data privacy bills

California

California Consumer Privacy Act

Colorado

Colorado Privacy Act (SB 21-190)

Delaware

Personal Data Privacy Act (HB 154)

Illinois

Data Privacy & Protection (HB 3385)

Indiana

Consumer Data Protection Act (SB 5)

Iowa

Consumer Data Protection Act (SB 262)

OregonData privacy regulation (SB 619)

Minnesota

Consumer Data Privacy Act (SB 2915)

Massachusetts

Data Privacy Protection Act (HB 83)

Montana

Consumer Data Privacy Act (SB 384)

Tennessee

Tennessee Information Protection Act (SB 73)

Texas

Data privacy and Security Act (HB 4)

Utah

Vehicle Consumer Data Protection (SB 215)

California took the lead with CCPA regulation

New bill to bar data brokers fromselling sensitive personal
information to U.S. adversaries
passed by the House
The bill bans organizations that profit
from selling personal data, known asdata brokers, from making data
accessible to a foreign adversary
country or entities controlled byadversaries.
It also authorizes the Federal Trade
Commission to seek civil penalties ofmore than $50,000 for each violation.

Image source: IAPP

Note: Many data privacy legislations have been
passed/signed by the governor but not enforced
yet.

Key takeaways

9

Data privacy legislation (s) are aimed at ensuring that personal data is stored securely and that it is not passed or sold on to third
parties without the agreement of the consumer. It is likely that the broader data privacy regulations will have sector-specificguidelines establishing a rules that promote local data processing and users' control over vehicle data. However, in absence of any
federal-level data privacy law or broader guidelines, it remains unclear how the state-level regulations will differ from one
another.
9

Analysis

European AI Act

European strategy for Artificial Intelligence
Regulation overview

StatusIntroduced



Draft

Enforced

The European AI Act is the first ever dedicated set of proposed laws by a major regulator. The European Commission seeks to establish a pan-European AI
framework that unlocks all the benefits of the fast-evolving artificial intelligence space for the European stakeholders. In addition, the Act also aims to develop theminimum necessary requirements to address the risks and problems linked to AI. At the same time, this framework aims to be flexible enough for it to be
dynamically adapted as the technology evolves and new concerning situations emerge. This proposed regulation has entered the final stages of negotiations
between the EU’s co-legislators.

Details

What’s New?

EU AI Act and the automotive industry

European Parliament approved AI
Act

The automotive OEMs are committed to leverage AI andmachine learning technology in response to the everchanging consumer demands. AI is becoming
instrumental across the entire value chain to frommanufacturing to post-production and connected
services to vehicle autonomy.

The new rules ban certain AI
applications that threaten citizens’
rights, including biometriccategorization systems based onsensitive characteristics (e.g., facialrecognition). It will enter into force
twenty days after its publication in theofficial Journal, and be fully applicable
24 months after its entry into force

After the publication of AI Act guidelines, the membersof European Automobile Manufacturers’ Association(ACEA) welcomed the EC’s approach of having a‘balance’ between the AI requirements and the risk levelof AI applications.
ACEA also emphasized the need to incorporate
automotive-specific AI guidelines to improve vehicle
production efficiency and promote safer mobility acrossEurope. These guidelines could be further integrated into
the existing vehicle type-approval framework.

Source: European Commission

EC publishes guidelines for the
responsible use of Generative AI
The Commission, together with theEuropean Research Area countries
and stakeholders, has put forward a
set of guidelines to support theEuropean research community in their
responsible use of generative artificial
intelligence (AI). More here

Key takeaways

10

European Commission maintains that the ‘AI Act’ once in effect, can serve as a reference point for the rest of the world to follow.
After the GDPR act came into force in 2018, many emerging countries followed suit and launched their own version of dataprotection bills inspired by the original GDPR. Many bills that were introduced elsewhere incorporated various aspects of the GDPR
before being published. The positive reception of EU AI Act by the automotive ecosystem is pushing the other countries to finallyconsider AI from a regulatory standpoint. Brazil congress was the first to follow EU with their own version of artificial intelligencebill introduced in 2021.

10

ChinaSummary Tables

Name of the law

Recent development(s)Nextactivity/milestone

Several Opinions of the General Officeof the People's Government of Zhejiang
Province on Supporting the Highquality Development of State-level
Telematics Pilot Zone (Deqing,
Zhejiang)

Related authorities can use this publication topromote IoV innovation, accelerate industry
development, strengthen public services,
deepen IoV application and improveorganizational guarantees.

Published on 2024/1/19 by
the People’s Government ofZhejiang Province.

Notice on the Pilot Work of “VehicleRoad-Cloud Integration” Application forIntelligent Networked Vehicles(Nationwide)

Published on 2024/1/17 by
Ministry of Industry andInformation Technology. The
trial plan ends in 2026.

3-12
monthsThree-Year Action Program for Digital
Infrastructure Construction andDevelopment in Anhui Province (20232025)

Based on the principles of “government
guidance and market-driven”. a series of citylevel pilot projects were planned,
encompassing 9 main contents including
roadside infrastructure construction, HD-map
application, etc.
Anhui aims to establish a digital infrastructure
system with 5G, gigabit optical networks andIPv6 development.

Published on 2023/12/15 byAnhui Data Resource
Management Bureau.

Older

China – Best Practices & Guidelines (1/2)

Shenyang Intelligent Networked
Vehicle Commercial Zone Construction
Program

Shenyang comes up with a plan of IoV
commercial zone construction to promote thedevelopment of economy by transforming
and upgrading of the automobile industry’s
intellectualization and network connectivity.

Published on 2023/12/1 by
Shenyang Municipal
Government.

Telematics Security Standardization
White Paper (2023) (Nationwide)

This white paper highlights the current stateof telematics security standards, identifies key
elements and aspects, and proposes
standards.

Published on 2023/12/13 by
China Communications
Standards Association.

Latest activity vs legal status
About the legislative/regulatory activity placement in the grid

Legal status
Last quarter

Last updated

Introduced

Key highlights•

Drafting

Published

⚫ ⚫
⚫ ⚫
⚫

Several provinces and cities in China, such as Zhejiang, Anhui, and Shenyang, have launched pilot projects, action programs, and commercial zone construction plans topromote the development of intelligent networked vehicles (IoV) and related infrastructure. These regional initiatives aim to accelerate the adoption of IoV technologies,
facilitate industry growth, and explore practical applications in areas like public services, transportation, and digital infrastructure.

China recognizes the importance of standardization and security in the rapidly evolving field of connected cars. The China Communications Standards Association has published awhite paper (Telematics Security Standardization White Paper 2023) that evaluates the current state of telematics security standards, identifies key elements and aspects, and11 proposes standardization needs and future development directions. This effort highlights China’s focus on establishing robust security standards and guidelines to ensure thesafe and reliable deployment of connected car technologies.

•

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