Two U.S. senators are calling on the Federal Trade Commission to investigate automakers selling customers’ driving data to brokers, who package it and then sell it to insurance companies.
Ron Wyden, D-Ore., and Edward Markey, D-Mass., claimed in a letter to FTC Chair Linda Khan that GM, Hyundai Motor, Honda and others may be sharing rides. driver data, such as sudden braking and acceleration.
The automakers used deceptive tactics to manipulate customers into signing agreements to disclose data to brokers, the senators said in a statement Friday.
After reading a report in “The” New York TimesWyden’s office investigated the three automakers and found they shared data with broker Verisk Analytics. In a letter to Khan, the senators wrote that all three automakers confirmed the data revelations. GM also confirmed it had disclosed customer location data to two other companies it did not name, the letter said.
Verisk uses the data to prepare driving behavior history reports, which it sells to insurance companies, the letter said. The senators wrote that some automakers may be deceiving customers by promoting data disclosures as a way to reduce insurance costs without telling them that some insurers may charge higher rates.
“If the FTC determines that these companies violated the law, we urge you to hold these companies and their executives accountable,” the senators wrote to Khan.
GM did not disclose how many vehicles’ data was sent to brokers or how much it paid, the letter said. The senator said Wyden’s office found that Hyundai shared data on 1.7 million vehicles and was paid more than $1 million, while Honda was paid nearly $26,000 for data on 97,000 vehicles.
A message seeking comment from the FTC was left after business hours Friday.
GM denied in an email that it deceived customers into joining Verisk’s data-sharing program. General Motors said its data-sharing partnerships with Verisk and LexisNexis were canceled in March, and its data-sharing program called “Smart Driver” ended in June.
“Data will only be shared with insurance companies if the customer initiates a quote directly with the carrier of their choice and provides consent separately to that carrier,” the email said.
The company said it does share “de-identified” data with partners to help with city infrastructure and make roads safer.
Hyundai said in a statement that the senators’ letter misrepresented its data policies and said it had safeguards in place to ensure customers consented to sharing driving information with insurance companies.
The company said customers can choose to connect their driving scores to their insurance companies through Verisk to receive possible benefits such as good driving discounts.
“It is important to note that Verisk is not authorized by Hyundai or the customer to share driving score data with the insurance company unless the customer expressly agrees on the insurance company’s website or app,” Hyundai said.
Honda also said customers must opt into the Verisk program. Some customers with good driving records have the opportunity to agree to discount offers from insurance companies. “Identifiable consumer information will not be shared with any insurance company without a clear second opt-in from the customer,” Honda said.
Verisk also disagrees with Wyden and Markey, saying in a statement that it “aims to ensure that data is accessed and used correctly.” The company said the responsible use of data “is a cornerstone of our business.”
