©2012 Jeffer Mangels Butler & Mitchell LLP. All rights reserved Vehicle Connectivity and New Technologies: Liability and Legal Issues

©2012 Jeffer Mangels Butler & Mitchell LLP. All rights reserved The Promise and Perils of Drivers and the Connected Car Smartphone Integration In-Dash Infotainment Systems Integrated Text Messaging Vehicle Internet Connections

3 Promises and Perils Who is Responsible for Distracted Driving? Is Your Car’s Data Private and Secure? New Laws, Regulations and Court Decisions

4 The Promises of the Connected Car Consumer Demand All DriversDrivers 18-35

5 The Promises of the Connected Car Consumer Demand Smartphone App Use for In-Car Audio

6 The Promises of the Connected Car Safety and Reliability Better, integrated use of phones and texting Remote Diagnostics Remote Software Updates

7 The Perils Distracted Driving 3,331 killed in ,000 injured 4x the crash risk =.08 BAC

8 True Stories Indiana, 2002: Driver using cell phone North Carolina, 2008: Truck driver text messaging California, 2009: Driver using navigation system

9 Williams v. Cingular Case Dismissed “A cellular phone does not cause a driver to wreck a car. Rather, it is the driver's inattention while using the phone that may cause an accident.”

10 Williams v. Cingular Case Dismissed “To place a duty on Cingular to stop selling cellular phones because they might be involved in a car accident would be akin to making a car manufacturer stop selling otherwise safe cars because the car might be negligently used in such a way that it causes an accident.”

11 Durkee v CH Robinson Case Dismissed “The court does not disagree with plaintiffs that using any data entry or retrieval device while driving is dangerous … Indeed, adjusting the radio and climate controls, or even talking to a passenger, can be risky activities. These situations beg the question, however, as to where does manufacturer responsibility end and the responsibility of the driver begin? ”

12 Durkee v CH Robinson Case Dismissed “the duty owed by a product manufacturer ‘does not require him to guard against hazards apparent to the casual observer or to protect against injuries resulting from the user's own patently careless and improvident conduct.’”

13 Ford v Hertz Case Dismissed “ That distracted driving might cause an accident was not a hazard inherent to the navigation system in the rental car. ”

14 Ford v Hertz Case Dismissed “[T]he Legislature has already determined, in codifying Vehicle Code sections and … that the benefits gained by permitting drivers to use a global positioning or mapping system while driving out-weigh the inherent risks of such use.”

15 Distracted Driving – Liability Williams v Cingular No liability Durkee v CH Robinson No liability Ford v Hertz No Liability

16 Lessons from the Courts: 1.No Comic Strips 2. If a technology can be used safely but isn’t, the manufacturer/provider is not responsible 3.Rely on the Legislature

17 The Connected Car – Cal Laws Vehicle Code § No video monitors in front seat EXCEPT -Vehicle information displays -GPS/Mapping -Interlock

18 The Connected Car – Cal Laws Vehicle Code §§ “A person shall not drive a motor vehicle while using a wireless telephone unless that telephone is specifically designed and configured to allow hands-free listening and talking, and is used in that manner while driving.” No cell phones if you are under 18, period.

19 The Connected Car – Cal Laws

20 The Connected Car – Cal Laws Vehicle Code § No Texting while Driving, EXCEPT: Devices “specifically designed and configured to allow voice operated and hands-free operation to dictate, send, or listen to a text-based communication.” Huh?

21 The Connected Car – Cal Laws Vehicle Code § CHP: No touching a phone. Legislature: Not meant for phones. It was meant for integrated messaging systems in cars.

22 The Connected Car – Cal Laws AB 313 Introduced February, 2013 Would eliminate hands-free texting from the Vehicle Code.

23 The Connected Car – Fed Laws NHTSA Guidelines Voluntary guidelines, not requirements -Limit device operation to one hand -Limit to two seconds time needed to look away from the road -Limit to twelve seconds the time needed to complete tasks -“Lock out” complex tasks unless the vehicle is in park

24 Product Liability Courts – Drivers are still responsible if technology is abused Look to the Laws

25 Privacy What Does Your Car Know? -Contacts From SmartPhone -Music, Playlists, Voice Memos -GPS Location Data -Diagnostics -Driving habits

26 Privacy – Vehicle Laws Vehicle Code § “Black Box” Law Covers “recording devices” which records driving information “for the purpose of retrieving data after an accident.” Navigation Systems? Infotainment Systems?

27 Privacy – Vehicle Laws Vehicle Code § “Black Box” Law Data belongs to vehicle owner – no access by manufacturer or third parties (like apps) Exception for Court Order

28 Privacy – Cal Laws California Online Privacy Protection Act Applies to all “online” services – including mobile apps Must provide privacy policy to customers

29 Privacy – Fed Laws Location Privacy Protection Act Pending before Senate Would require companies that can obtain location data from a smartphone or mobile device to get the user’s consent before collecting or distributing that data Potential criminal penalties

©2012 Jeffer Mangels Butler & Mitchell LLP. All rights reserved The Promise and Perils of Drivers and the Connected Car Product Liability California Laws and Fed Guidelines Cal and Fed Privacy Laws