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By Declan McCullagh, News.com
Posted on ZDNet News: Dec 5, 2005 7:50:00 PM

Commentary--Trust federal bureaucrats to take a good idea and transform it into a frightening proposal to track Americans wherever they drive.

The U.S. Department of Transportation has been handing millions of dollars to state governments for GPS-tracking pilot projects designed to track vehicles wherever they go. So far, Washington state and Oregon have received fat federal checks to figure out how to levy these "mileage-based road user fees."

Now electronic tracking and taxing may be coming to a DMV near you. The Office of Transportation Policy Studies, part of the Federal Highway Administration, is about to announce another round of grants totaling some $11 million. A spokeswoman on Friday said the office is "shooting for the end of the year" for the announcement, and more money is expected for GPS (Global Positioning System) tracking efforts.

In principle, the idea of what bureaucrats like to call "value pricing" for cars makes sound economic sense.

No policy bans police from automatically sending out speeding tickets based on what the GPS data say.

Airlines and hotels have long charged less for off-peak use. Toll roads would be more efficient--in particular, less congested--if they could follow the same model and charge virtually nothing in the middle of the night but high prices during rush hour.

That price structure would encourage drivers to take public transportation, use alternate routes, or leave earlier or later in the day.

The problem, though, is that these "road user fee" systems are being designed and built in a way that strips drivers of their privacy and invites constant surveillance by police, the FBI and the Department of Homeland Security.

Zero privacy protections
Details of the tracking systems vary. But the general idea is that a small GPS device, which knows its location by receiving satellite signals, is placed inside the vehicle.

Some GPS trackers constantly communicate their location back to the state DMV, while others record the location information for later retrieval. (In the Oregon pilot project, it's beamed out wirelessly when the driver pulls into a gas station.)

The problem, though, is that no privacy protections exist. No restrictions prevent police from continually monitoring, without a court order, the whereabouts of every vehicle on the road.

No rule prohibits that massive database of GPS trails from being subpoenaed by curious divorce attorneys, or handed to insurance companies that might raise rates for someone who spent too much time at a neighborhood bar. No policy bans police from automatically sending out speeding tickets based on what the GPS data say.

The Fourth Amendment provides no protection. The U.S. Supreme Court said in two cases, U.S. v. Knotts and U.S. v. Karo, that Americans have no reasonable expectation of privacy when they're driving on a public street.

The PR offensive
Even more shocking are additional ideas that bureaucrats are hatching. A report prepared by a Transportation Department-funded program in Washington state says the GPS bugs must be made "tamper proof" and the vehicle should be disabled if the bugs are disconnected.

"This can be achieved by building in connections to the vehicle ignition circuit so that failure to receive a moving GPS signal after some default period of vehicle operation indicates attempts to defeat the GPS antenna," the report says.

It doesn't mention the worrisome scenario of someone driving a vehicle with a broken GPS bug--and an engine that suddenly quits half an hour later. But it does outline a public relations strategy (with "press releases and/or editorials" at a "very early stage") to persuade the American public that this kind of contraption would be, contrary to common sense, in their best interest.

One study prepared for the Transportation Department predicts a PR success. "Less than 7 percent of the respondents expressed concerns about recording their vehicle's movements," it says.

That whiff of victory, coupled with a windfall of new GPS-enabled tax dollars, has emboldened DMV bureaucrats. A proposal from the Oregon DMV, also funded by the Transportation Department, says that such a tracking system should be mandatory for all "newly purchased vehicles and newly registered vehicles."

The sad reality is that there are ways to perform "value pricing" for roads while preserving anonymity. You could pay cash for prepaid travel cards, like store gift cards, that would be debited when read by roadside sensors. Computer scientists have long known how to create electronic wallets--using a technique called blind signatures--that can be debited without privacy concerns.

The Transportation Department could require privacy-protective features when handing out grants for pilot projects that may eventually become mandatory. It's now even more important because a new U.S. law ups the size of the grants; the U.K. is planning GPS tracking and per-mile fees ranging between 3 cents and $2.

We'll see. But given the privacy hostility that the Transportation Department and state DMVs have demonstrated so far, don't be too optimistic.

biography
Declan McCullagh is CNET News.com's Washington, D.C., correspondent. He chronicles the busy intersection between technology and politics. Before that, he worked for several years as Washington bureau chief for Wired News. He has also worked as a reporter for The Netly News, Time magazine and HotWired.

  • Talkback
  • Most Recent of 78 Talkback(s)
This just means my prices will go up
I'm in the sales and repair business and if I get charged for each mile I drive (which is about 30K miles a year) that just means I'll have to charge my customers a mileage charge. Which means they will have to charge you the consumer more. Just doesn't make sense to me.... (Read the rest)
Posted by: sinned96@... Posted on: 02/24/08 You are currently: Logged In | Log out
per-mile fees Jack-Booted EULA   | 12/05/05
Fuel Tax is figured wrong msjohnso   | 12/05/05
simple solution Jack-Booted EULA   | 12/05/05
Or just make it a straight %. -NT- Update victim   | 12/06/05
Not enough coming in generalist@...   | 12/06/05
Then why not charge a tax based... Beat a Dead Horse   | 12/08/05
two things Spats30   | 12/13/05
Not enough coming in generalist@...   | 12/06/05
The Potential for Abuse DaffyDuck   | 12/05/05
its scary csa0307   | 12/05/05
it was meant to be abused from the outset Jeff Spicoli   | 12/05/05
Most people that I talk to don't even know Hugh Jass   | 12/05/05
it was meant to be abused from the outset halgr   | 12/06/05
How about this for a better idea? Beat a Dead Horse   | 12/08/05
Over Kill d6564   | 12/05/05
fees SamSnee1   | 12/09/05
Hitler would have loved this system Arrg   | 12/05/05
So would Uncle Joe Stalin msjohnso   | 12/05/05
..and Uncle Bush's handlers will see to it that he loves it too Jeff Spicoli   | 12/05/05
Instead of alternatives... techboy_z   | 12/05/05
because there is NOTHING anyone is going to do about it Jeff Spicoli   | 12/05/05
Which taxes for what services? generalist@...   | 12/06/05
Browser Problems generalist@...   | 12/06/05
The taxes already do come from somewhere Beat a Dead Horse   | 12/08/05
Which taxes for what services? generalist@...   | 12/06/05
Which taxes for what services? generalist@...   | 12/06/05
GPS Spoofing b8zs4@...   | 12/05/05
Correct halgr   | 12/06/05
Another Freedom on the way out! lwhite@...   | 12/05/05
E-tracking rabrooks   | 12/05/05
They've got it backwards on tollroads jupco   | 12/05/05
No, you have it backwards! zaphod@...   | 12/05/05
Above comment is NOT applicable to toll roads - NT- Update victim   | 12/06/05
NO! Its backwards . . . zclayton2   | 12/06/05
Prius Tax jupco   | 12/05/05
WHAT? zaphod@...   | 12/05/05
that was actually how this all started Jeff Spicoli   | 12/05/05
You sure are entertaining Jeff. Roger Ramjet   | 12/06/05
Why thank you, Mr. bungled hyperlink Jeff Spicoli   | 12/06/05
DING DING!!! Jeff Spicoli   | 12/05/05
Are you for real? AKN3t4dmin   | 12/05/05
I was being too broad Jeff Spicoli   | 12/05/05
Natural gas leak Roger Ramjet   | 12/06/05
Why not Roger Ramjet   | 12/06/05
those days are over Jeff Spicoli   | 12/06/05
Warning techboy_z   | 12/06/05
I'm really scared now Jeff Spicoli   | 12/06/05
re: Fed employees are people too... JohnGault2000   | 12/06/05
Hold On SamSnee1   | 12/09/05
It's a good idea. Anthony S.   | 12/05/05
too bad.. Jeff Spicoli   | 12/05/05
Wreckless? MarkieMark   | 12/05/05
That someone going 100mph? The Nomad   | 12/06/05
Were you driving on a Montana Interstate highway or a city street. Update victim   | 12/06/05
Were you driving on a Montana Interstate highway or a city street. Update victim   | 12/06/05
Not a good idea AndyKron   | 12/06/05
Good Idea halgr   | 12/06/05
Next Time SamSnee1   | 12/09/05
YOU MUST BE KIDDING mememe007   | 04/05/06
Our Tribute to the Old Soviet Union & KGB Vladimir Druzhshchienschkyy   | 12/05/05
The Human Spirit susan28   | 02/24/07
Just another way to make old cars more valuable. - NT- Update victim   | 12/06/05
Stop it now AndyKron   | 12/06/05
Revolution SamSnee1   | 12/09/05
Greenies get taste of own medicine JohnGault2000   | 12/06/05
Who can we contact to voice our decent??? halgr   | 12/06/05
good work susan28   | 02/24/07
Simple solution to privacy issue ligonite   | 12/06/05
Nowhere to Run ciociario   | 12/06/05
What about when it breaks? mysidia   | 12/06/05
E-Big Brother halgr   | 12/06/05
The simplest soulution of all Allen_z   | 12/07/05
Good idea Boot_Agnostic   | 12/07/05
I will smash it. SamSnee1   | 12/09/05
You will learn to love it. znet6042   | 12/27/05
PEOPLE WHO AGREE TO THIS ALSO LIKE PAPERLESS VOTING mememe007   | 04/05/06
DON'T STAND FOR THIS!!!! mememe007   | 04/05/06
This just means my prices will go up sinned96@...   | 02/24/08

What do you think?