Senators Call on Federal Trade Commission to Investigate Automakers’ Selling of Driving Data to Brokers
DETROIT — Two U.S. senators are calling on the Federal Trade Commission to investigate automakers that sell their customers’ driving data to brokers who package it and then resell it to insurance companies.
In a Letter to FTC Chair Linda KhanDemocrats Ron Wyden of Oregon and Edward Markey of Massachusetts say General Motors, Hyundai, Honda and possibly others share driver data, such as harsh braking and acceleration.
The automakers, the senators said in a statement Friday, used deceptive tactics to manipulate customers into signing up for data disclosure to brokers.
After reading a New York Times article, Wyden’s office investigated the three automakers and found that they shared data with broker Verisk Analytics. In the letter to Khan, the senators wrote that all three automakers confirmed the data disclosure. GM also confirmed that it disclosed customer location data to two other companies that the automaker declined to name, according to the letter.
Verisk used the data to create reports on driving history and sold it to insurance companies, the letter said. Some automakers may have misled customers by advertising the data disclosure as a way to lower their insurance bills, without telling them that some insurers could charge more, the senators wrote.
“If the FTC determines that these companies violated the law, we urge you to hold the companies and their senior executives accountable,” the senators wrote to Khan.
GM declined to say how much vehicle data was sent to the brokers or how much compensation they received, according to the letter. Wyden’s office found that Hyundai shared data from 1.7 million vehicles and was paid just over $1 million, while Honda received just under $26,000 for data from 97,000 vehicles, the senators said.
A message was left after business hours Friday seeking comment from the FTC.
In an email, GM denied misleading customers into signing up for the data-sharing program with Verisk. Data-sharing partnerships with Verisk and LexisNexis were canceled in March, and its data-sharing program called “Smart Driver” ended in June, GM said.
“Data was only shared with an insurer if a customer obtained a quote directly from their chosen carrier and provided separate consent to that carrier,” the email said.
The company said it shares “anonymized” data with partners to help urban infrastructure and make roads safer.
In a statement, Hyundai said the senators’ letter misrepresents its data policies and that it has safeguards to ensure customers agree to share driving information with insurers.
Customers, he said, had the option to link driving scores to their insurers through Verisk to qualify for potential benefits such as discounts for good driving.
“It is important to note that Verisk has not been authorized by Hyundai or the customer to share Drive Score data with insurers until the customer explicitly consents on an insurer’s website or app,” Hyundai said.
Honda also said customers had to opt-in to the program with Verisk. Some customers with good driving records were given the opportunity to accept discount offers from insurers. “Without this second clear opt-in from the customer, no identifiable consumer information was shared with any insurance company,” Honda said.
Verisk also disagreed with Wyden and Markey, saying in a statement that it “takes action to ensure data is accessed and used appropriately.” The company said responsible use of data “is a cornerstone of our business.”
