Commerce Department to Release Rules on Connected Vehicles

The U.S. Commerce Department plans to unveil proposed regulations next month concerning connected vehicles, with a specific focus on critical software components manufactured in China and other nations deemed as adversaries.

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    Alan Estevez, the department’s export controls chief, announced last week that the rules will target components responsible for managing vehicle software and data, requiring them to originate from allied countries.

    This regulatory initiative follows Commerce Secretary Gina Raimondo’s May announcement of forthcoming rules specifically addressing Chinese-linked vehicles, to be published later this year. Raimondo indicated that the Biden administration could take drastic measures, such as banning Chinese-connected vehicles or imposing restrictions, following a probe initiated in February into potential national security risks posed by Chinese vehicle imports.

    Estevez’s remarks at a forum in Colorado represent the clearest indication to date of the administration’s stance on Chinese vehicles, which have raised significant concerns. He underscored the seriousness of the cybersecurity threat, noting that modern vehicles, equipped with sophisticated software and network infrastructure, gather extensive user data, posing vulnerabilities to security breaches.

    Connecting the Data

    Connected vehicles, equipped with integrated network hardware enabling internet connectivity, have the capability to exchange data with both internal and external devices. Estevez emphasized these risks, stating, “A car is formidable. Your vehicle gathers a wealth of information about you, from software updates to driving habits, connectivity to personal devices and location tracking.”

    In response to potential U.S. actions, the Chinese foreign ministry urged adherence to market economy laws and fair competition principles, asserting the global popularity of Chinese cars driven by technological innovation and robust market competition.

    In her May remarks, Raimondo warned of potential catastrophic consequences if software in millions of connected vehicles were compromised. Despite relatively low imports of Chinese-made light-duty vehicles, the Biden administration has proposed substantial tariff hikes on Chinese electric vehicles and other goods, set to be implemented by Aug. 1.

    The Connected Car Economy

    Looking forward, the Automotive Edge Computing Consortium (AECC) forecasts that by 2025, global connected vehicle numbers will reach approximately 100 million, with data transmissions between vehicles and the cloud totaling about 10 exabytes per month — equivalent to 10 billion gigabytes.

    According to a 2021 white paper titled, “Distributed Computing in an AECC System,” the AECC outlined best practices for distributed computing to manage the substantial data volumes associated with connected vehicles. Notable members of the AECC board include Toyota, Intel, Ericsson, Denso, Samsung, Dell-EMC, Nippon Telegraph and Telephone (NTT) and KDDI Research.

    The report emphasized the unique challenges posed by connected vehicles.

    “For connected vehicles, the amount of uploaded data is massive, concentrated (in time and location) and often time sensitive,” the report said.

    In contrast to conventional consumer mobility services, which predominantly involve data flowing from providers to consumers, connected vehicles primarily transmit data to service providers. This operational dynamic underscores the critical need for distributed computing capabilities within AECC systems to uphold optimal service standards, particularly those intricately tied to vehicle functionalities, per the report.

    Data Privacy

    Privacy has always been a key issue as the topic of connected vehicles picks up steam.

    Revelations in a New York Times report highlight a troubling reality for drivers: detailed records of every trip, including speed and abrupt braking, are meticulously logged by data brokers.

    This insight into the thorough monitoring of driving behavior highlights a broader concern among consumers about the privacy of their data in the era of connected cars.

    These internet-enabled vehicles, equipped with advanced features such as GPS navigation systems, cameras and sensors, heavily rely on the collection and transmission of extensive data.

    While this data access has undeniably enhanced overall driving experiences — improving safety, traffic management, payment efficiency and offering personalized entertainment options — the practice of automakers sharing driving data with third parties, particularly insurance companies, has sparked heated debate.

    Advocates, such as data brokers like LexisNexis, argue that personalized insurance premiums based on driving behavior could incentivize safer practices and potentially lower rates. Critics, however, have voiced concerns about potential data misuse and exploitation.


    Kelly Cook on David’s Bridal’s Aisle to Algorithm to Amazon Strategy

    Highlights

    David’s Bridal CEO Kelly Cook gives Karen Webster the scoop on the brand’s new Amazon partnership, launching The Edit by DB Studio to offer affordable, high-quality dresses for weddings and beyond — directly on the world’s largest retail platform.

    The move signals a bold shift from traditional bridal retail to a digital-first, multi-occasion fashion and media company, with AI and data driving future growth.

    Cook emphasizes trust, speed and convenience as David’s leverages Amazon’s logistics and reach to serve shoppers who demand both style and seamless online experiences.

    Watch more: David’s Bridal Bets on Amazon Partnership to Deliver Speed, Data and Style

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      Turns out Kelly Cook wasn’t kidding around. When David’s (formerly David’s Bridal) CEO last spoke to Karen Webster in mid-June she promised a big upcoming announcement that would support her vision of rebranding the dominant bridal retailer as a special occasion apparel and media company. But in order to take that next step she needed a big win. A big retail partner to amplify her “aisle to algorithm” vision.

      How’s Amazon for a big win? On July 9, David’s opened a new Amazon storefront featuring a new brand that offers gowns and dresses for both special and everyday occasions. By opening The Edit by DB Studio, Cook aims to continue expanding its offerings and ways to shop, positioning it to compete outside of bridal fashion and introduce its fashion to new shoppers through the biggest retailer on the planet. And in fitting with Cook’s expansive vision, The Edit by DB Studio offers styles that span bridal, bridesmaid, wedding guest, junior and occasion wear.

      Cook understands that as far as her ambitions for David’s go, it still begins and ends with the bride.

      “We needed to serve the brides that wanted a dress that was under $500, but she did not want to sacrifice the quality of a $5,000 dress,” Cook told Webster. “That is the key. She did not want a cheap dress. That is not what she wanted. She wanted a highly constructed, beautiful branded gown of high quality that was under $500. So that’s when we launched, discovered and defined the Edit by DB Studio brand. And we wanted to serve it to as many customers as possible, which is why we partnered with Amazon.”

      Aisle to Algorithm

      The partnership creates huge opportunities for David’s revenue and Cook’s vision of a special occasion apparel and media company. Nothing says “aisle to algorithm” like buying formal occasion attire on Amazon. But the partnership raises new issues for David’s, which Webster pressed Cook on during their conversation. How could a bride and her guests say yes to the dress without trying it on? How would the mass market Amazon experience play in the specialized, upscale world of David’s? And how would formal apparel play on Amazon?

      All those questions define Cook’s next challenge, which is convincing brides that a dress ordered with one click can still make them feel flawless on the big day. “Most women, most brides want to come in for an appointment. They want to fit the dress because fit is everything,” Cook acknowledged. Yet pandemic‑era virtual consultations proved the fitting room can be digitized. “Our virtual stylists are incredible. I mean, they sell millions and millions and millions of dollarsof gowns online without ever seeing a bride in person.”

      For Amazon shoppers, the safety net is logistics, not tailoring. “Amazon has such an incredible model, meaning you can buy multiples and return. That process is extremely convenient for brides,” she said, noting Happy Returns counters at Kohl’s and UPS that remove friction from the try‑buy‑return loop. And David’s is hardly ceding speed to its new partner. The chain already has an inventory of about 400,000 dresses locally across the country, with each of its retail locations serving as a distribution center. The difference, she said, is that Prime now meets a cohort of “last‑minute brides” who shop “a month away”— or even a weekend before — without compromising fit or style.

      Cook insists the partnership will enhance rather than dilute the 75‑year‑old brand. “We think we’re fulfilling a need on Amazon to offer trustworthy, high-quality, really sophisticated craftsmanship gowns,” she said, recalling that reporters at New York Bridal Fashion Week could not single out the Amazon‑bound styles from the couture rack.

      Asked whether the anything‑goes Amazon cart — where a $199 wedding dress might sit alongside paper towels — could cheapen the experience, Cook was blunt: “If our bride chooses a David’s dress but she wants to buy it on Amazon, we’re serving her … we’re just so privileged to serve her.” The storefront, she noted, flows directly from management’s first pillar under its “Aisle to Algorithm” roadmap: “to own all bridal across all price points and channels.”

      Data to Aisle to Algorithm

      What David’s hopes to gain from the experiment is data and speed. “We want to know what sells the quickest … Amazon could just get us data faster,” Cook said. Occasion‑wear prices on the marketplace have already climbed from $49 four years ago to $199 today, and David’s “is forecasting that the Amazon price point will continue to grow as they lean more heavily into fashion. She also wants a close look at Prime‑style fulfillment: “They are the best at distribution … is there something we can learn from them there as partners?”

      Traditional seasonality is shifting, too. “About three years ago, we were seeing this massive spike come up in May, Cook said, eventually realizing, “guess what else requires a white dress? Graduation. Meanwhile, many ceremonies now require wardrobes, not just one gown. “Some of our data say their second dresses, some of our data say their third dresses … we even have brides buy an exit dress, she said, adding that Amazon’s two‑day promise “allows them to sort of level up those second and third and tertiary dresses without sacrificing look or fashion.”

      Wholesale rollout is next. The vertically integrated chain “is going to be partnering with boutiques to supply gowns at a fraction of current wholesale prices. And Cook double-clicked on her last interview with Webster, which dealt mostly with the role AI will play in the aisle-to-algorithm journey. “Our vision is to be the largest AI retail and media marketplace for all special occasions.”

      Cook closed with the metric she guards most closely. “The number one word customers use when they describe us is trust, and we will never do anything to break that trust, she said.