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In a letter to the US Federal Trade Commission, Senators Ron Wayde and Edward Markey revealed that Honda and Hyundai sold driver data to data broker Verisk Analytics for little profit. This brings to light the increased scrutiny automakers are facing regarding their data collection and sharing policies. Investigations exposed that some automakers are selling driver information to companies who then sell it to insurance providers. Honda shared data from 97,000 cars with Verisk for $25,920, while Hyundai sold data from 1.7 million vehicles for roughly $1 million. General Motors also sold data from drivers in its Smart Driver program to Verisk. The senators accused automakers of making deceptive claims about program outcomes and urged the FTC to investigate data sharing practices.
Automakers such as Honda, Hyundai, and General Motors have been found to sell driver data to data brokers like Verisk Analytics. This data is collected from vehicles with internet connectivity, often without the drivers’ knowledge. While Honda earned just 26 cents per car from Verisk for sharing data from 97,000 cars, Hyundai sold data from 1.7 million vehicles for 61 cents per car.
One of the key issues highlighted by the senators is the lack of transparency in data sharing practices by automakers. Drivers enrolled in programs like Honda’s Driver Feedback and Hyundai’s Driving Score were unaware that their data was being sold to third parties. General Motors also did not disclose the number of cars involved or the amount paid when selling data to Verisk.
The letter to the FTC accuses automakers of making deceptive claims about the potential outcomes of their programs. Instead of highlighting possible rate hikes, automakers focused on potential discounts for drivers who participated in these data-sharing programs. This lack of transparency and misleading information has raised concerns among lawmakers and consumer advocacy groups.
Senators Wayde and Markey have called on FTC Chair Lina Kahn to investigate how automakers disclose and share consumer data. The goal is to ensure that proper consent is obtained from drivers before their data is shared with third parties. This investigation may lead to stricter regulations and guidelines for automakers regarding data collection and sharing practices.
The revelations about automakers selling driver data raise significant privacy concerns for consumers. With the increasing connectivity and data collection capabilities of modern vehicles, drivers must be aware of how their data is being used and shared. The potential for insurance companies to use this data to adjust rates or deny coverage based on driving habits underscores the need for greater transparency and data protection measures.
Overall, the case of automakers selling driver data highlights the complex relationship between technology, data collection, and privacy in the automotive industry. As vehicles become more connected and data-driven, regulators and consumers must work together to ensure that data is handled ethically and responsibly by all parties involved.