The laws regarding using a mobile phone while driving vary from country to country, but most countries and States now ban using a handheld phone. However, because a bluetooth headphone is a hands free device it is often legal to use it - if in double check with your local Department of Motor Vehicles or Automobile Club.
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No, bluetooths are not illegal when used in a car. There are many good companies that sell bluetooth packages. Make sure to read all instructions to insure proper installation.