At least one member of a panel of the U.S. Court of Appeals for the First Circuit said she was “troubled” by aspects of the Massachusetts Data Access Law—approved overwhelmingly by voters in a November 2020 ballot initiative—during oral argument on February 3, 2026 in an appeal brought by the Alliance for Automotive Innovation (“Auto Innovators”) arguing the state law is preempted by the Federal Motor Vehicle Safety Act (FMVSA). The First Circuit urged Auto Innovators and the Massachusetts Attorney General’s Office to seek mediation and work toward identifying a technical solution to address the cybersecurity concerns raised by manufacturers while providing vehicle owners and independent repair shops the access they need to perform diagnostic and repair services.

OEMs Argue Compliance with Data Access Law Is Impossible

The Data Access Law, codified at Mass. Gen. Laws c. 93K, § 2, requires that “access to vehicle on-board diagnostic systems shall be standardized and not require any authorization” by manufacturers, and that vehicles sold in Massachusetts that “utilize a telematics system” be equipped with an “inter-operable, standardized and open access platform” across all models providing direct access for owners and independent repairs shops to perform vehicle repairs. Auto Innovators filed a lawsuit in December 2020, arguing that because the technology necessary to comply with these requirements did not exist, the Data Access Law was preempted by federal law, both because it was impossible for auto manufacturers to comply with the Data Access Law and the FMVSA at the same time, and because the Data Access Law stood as an obstacle to accomplishing federal policy with respect to vehicle safety.

The Massachusetts Attorney General’s Office argued manufacturers could comply with the Data Access Law by disabling telematics systems in vehicles sold in Massachusetts, and pointed to two manufacturers who chose to do that to avoid being found in violation of the law. After a protracted delay, a federal district court judge in February 2025 rejected the preemption argument made by Auto Innovators, and also found that Auto Innovators lacked standing to challenge the Data Access Law on behalf of all manufacturers. Auto Innovators appealed the decision to the First Circuit.

Panel Expresses Skepticism About Aspects of Data Access Law

On appeal, Auto Innovators urged the First Circuit to reverse, arguing that because the Data Access Law only allows manufacturers to implement access controls to vehicle systems if done through an “inter-operable, standardized and open access platform” across all models, and because no such system exists, “the Massachusetts law effectively bars manufacturers from implementing these controls at all.” Auto Innovators also argued that the solution proposed by the Massachusetts Attorney General’s Office—disable vehicle-installed telematics systems and effectively exit the market for telematics-equipped vehicles in Massachusetts—had been rejected by the U.S. Supreme Court in other contexts, and “only confirms the existence of an irreconcilable clash between federal and state law.”

During oral argument, one member of the panel told counsel for Auto Innovators that this was “a very good point” and said she was “troubled” by this result, and asked whether the parties would consider participating in the court’s mediation assistance program. Other members of the panel pressed both parties on the proposed solution of disabling vehicle-installed telematics systems, noting that manufacturers could still sell cars in Massachusetts, but not with telematics systems, which the National Highway Traffic and Safety Administration (NHTSA) has observed can be “important” to vehicle safety. The panel urged the parties to discuss a potential mediation involving all interested parties—Auto Innovators, manufacturers, the Massachusetts Attorney General’s Office, and aftermarket repairers—and “report back within three to four weeks” as to whether they wanted to pursue that avenue before the First Circuit rendered a decision on appeal.