Mercedes has fitted spy tracker devices to thousands of high-performance cars.
The secret sensors have been fitted to new and used models, enabling the manufacturer to view each car’s exact location.
It claims the devices are only activated in “exceptional circumstances” where customers default on finance agreements and says they have not been used to permanently track customers or access real-time data.
But it admits it shared the data with third-party bailiffs and recovery firms.
The company said: “When a customer chooses to finance the purchase of their car this way, they sign a contract and agree to the location sensors in the car being activated in the event that they default or breach their agreement.
“This clause in the finance contract is in bold print, just above the customer’s signature.
“Locating the car is part of the repossession process and is not permanently tracking customers.
“It is only activated in exceptional circumstances where the customer has breached their finance agreement and repeatedly failed to reply to requests to contact us.”
Mercedes’ rivals, including BMW and Jaguar Land Rover, say they do not carry out similar tracking.
British politician David Davis told the Sun newspaper: "This is not the first time big business has behaved like Big Brother – but it's rare to be quite as deceitful as this.
“I have to question whether it is even legal to pass on information to other people such as bailiffs.
“I would think the relevant minister ought to look very closely at the legality of this procedure.”
In the UK, an estimated 80 per cent of Mercedes’ vehicles are sold on finance plans.
It is illegal under EU data protection laws to track a vehicle without the driver’s knowledge, but cars bought on finance agreements include a clause about location sensors which customers must sign up to.
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Founders: Michele Ferrario, Nino Ulsamer and Freddy Lim
Started: established in 2016 and launched in July 2017
Based: Singapore, with offices in the UAE, Malaysia, Hong Kong, Thailand
Sector: FinTech, wealth management
Initial investment: $500,000 in seed round 1 in 2016; $2.2m in seed round 2 in 2017; $5m in series A round in 2018; $12m in series B round in 2019; $16m in series C round in 2020 and $25m in series D round in 2021
Current staff: more than 160 employees
Stage: series D
Investors: EightRoads Ventures, Square Peg Capital, Sequoia Capital India
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
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