The car-to-car communication transponder technology that the DoT has in mind would communicate a car’s location, direction, and speed to nearby vehicles. The system could then alert the driver of potential danger and/or automatically slow or stop the car to avoid a crash. There are a couple concerns to address with such a system, though.
First, there is the question of privacy, and whether or not that data could be used against you. If your car is sending detailed speed data to nearby vehicles, and you pass a police car, would that police officer be able to pull you over and write you a ticket simply based on the fact that your own car announced that you were speeding?
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