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Chinese EV maker Deepal faces backlash over data privacy, ad practices

By MLex Staff ( June 6, 2025, 07:53 GMT | Insight) -- An electric vehicle brand based in Chongqing in southwest China is now facing public backlash over alleged personal-information infringements and a breach of China’s Advertising Law. The controversy stems from intrusive ad pushes and user agreement settings in the brand's app. Deepal, an EV brand under central state-owned Changan Automobile, first drew complaints from car owners after advertisements for new vehicle models were pushed through its in-vehicle systems.An electric vehicle brand based in Chongqing in southwest China is now facing public backlash over alleged personal-information infringements and a breach of China’s Advertising Law. The controversy stems from intrusive ad pushes and user agreement settings in the brand's app. Deepal, an EV brand under central state-owned Changan Automobile, first drew complaints from car owners after advertisements for new vehicle models were pushed through its in-vehicle systems. Owners allege that these in-motion ads compromise safety and cannot be dismissed at will, requiring a minimum five-second viewing period. In response, the company’s legal team asserted that the advertisements appear only when the vehicle is in Park mode — not while driving — and that users can easily dismiss them, or they automatically exit upon vehicle operation. Despite this defense, skepticism remains. Under Article 43 of China’s Advertising Law, organizations and individuals are prohibited from delivering ads directly to a person’s home, vehicle, or via electronic communication unless prior consent or request is obtained. The company’s CEO later issued an apology on Sina Weibo, promising to refrain from sending such advertisements via the in-vehicle channel. However, Deepal's updated privacy policy failed to reflect this pledge. It only added a list of software development kits, or SDKs, with detailed data-collection practices, which was requested by authorities of all apps to increase transparency. Deepal's app also requires users to accept its terms of service and privacy policy to gain full access. Those who refuse are confined to a visitor mode with limited functionality — a practice that critics say effectively forces users to share personal information to use the app as intended. Critics note that some of the data Deepal's app collects is classified as sensitive, and under China’s Personal Information Protection Law, or PIPL, processing such data demands separate explicit consent. The app's terms of service state that it collects equipment details, operation logs, photos, videos, localized information as well as permissions to read and write calendar entries. Meanwhile, its privacy policy outlines the collection of names, mobile phone numbers, home addresses, identification numbers and gender at the time of purchase, along with a broader range of data — including vehicle identification numbers, charging statuses and spending records — when users engage with its products or services. Notably, product promotion is explicitly listed among the purposes for these data collection efforts. According to the PIPL, when companies rely on automated decision-making to push information or conduct commercial marketing, they must provide non-personalized alternatives or a simple opt-out mechanism. The controversy is taking place against a competitive backdrop where Chinese EV companies are striving to reduce inventory and boost sales, often engaging in cutthroat competition (see here). In 2024, Deepal reported cumulative deliveries of 243,000 vehicles and a sales target of 500,000 units for 2025. It has so far reported sales of just 113,300 units from January through May. While authorities have yet to intervene, recent campaigns by four government agencies — including Internet and market regulators — have targeted similar illegal data practices by apps and other issues (see here).  The campaigns initiated in March scrutinized noncompliant app practices, including personalized information pushes without easy opt-out options and frequent, "accidental" ad redirections on splash screens. Meanwhile, technical centers supporting Internet (see here) and public security regulators (see here) and the regulator for industry and information technology (see here) have been actively testing apps for their uncompliant data collection and use practices. -Analysis by Wang Juan....

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