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Senators want to investigate the sale of driving data by car manufacturers

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Two U.S. senators are calling on the Federal Trade Commission to investigate automakers that sell their customers’ driving data to brokers who bundle that data and then sell it to insurance companies. In a letter to FTC Chair Linda Khan, Democrats Ron Wyden of Oregon and Edward Markey of Massachusetts allege that General Motors, Hyundai, Honda and possibly others share driver data such as sudden braking and acceleration. The automakers, the senators said in a statement Friday, used deceptive tactics to manipulate customers and get them to agree to share the data with brokers. After reading a report in The New York Times, 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 sharing the data. GM also confirmed that it shared customer location data with two other companies that the automaker declined to name, the letter said. Verisk used the data to create driving history reports and sold them to insurance companies, the letter said. Some automakers may have deceived customers by promoting data disclosure as a way to lower insurance bills and not telling them that some insurers could charge higher fees, the senators wrote. “If the FTC finds that these companies violated the law, we urge you to hold the companies and their executives accountable,” the senators wrote to Khan. GM would not say how much vehicle data it sent to brokers or how much it paid for it, according to the letter. Wyden’s office found that Hyundai shared data on 1.7 million vehicles and received just over $1 million for it, while Honda received just under $26,000 for data on 97,000 vehicles, the senators said. A message seeking comment from the FTC was left after business hours Friday. In an email, GM denied that it deceived customers to get them to enroll in the data-sharing program with Verisk. The data-sharing partnerships with Verisk and LexisNexis were terminated in March, and the “Smart Driver” data-sharing program ended in June, GM said. “Data was only shared with an insurer when a customer obtained a quote directly from their chosen insurer and provided separate consent to that insurer,” the email said. The company said it shares “anonymized” data with partners to improve city infrastructure and make roads safer. In a statement, Hyundai said the senators’ letter misrepresents its data policies and that it has safeguards in place to ensure customers consent to sharing driving information with insurers. Customers, it said, would have the option to submit driving scores to their insurers through Verisk for possible benefits such as discounts for good driving. “It is important to note that Verisk was not authorized by Hyundai or the customer to share the Drive Score data with insurers until the customer explicitly consented to it on an insurer’s website or app,” Hyundai said. Honda also said customers had to opt into the program with Verisk. Some customers with good driving scores were given the opportunity to accept discount offers from insurers. “No identifiable consumer information was shared with an insurance company without this clear second consent from the customer,” Honda said. Verisk also disagreed with Wyden and Markey, saying in a statement that it “acts to ensure data is accessed and used appropriately.” The company said responsible use of data is “the cornerstone of our business.”

LOS ANGELES —

Two U.S. senators are calling on the Federal Trade Commission (FTC) to investigate automakers that sell their customers’ driving data to brokers who bundle the data and then sell it to insurance companies.

In a letter to FTC Chair Linda Khan, Democratic Reps. Ron Wyden of Oregon and Edward Markey of Massachusetts allege that General Motors, Hyundai, Honda and possibly other automakers share data about their drivers, such as information about sudden braking and acceleration.

The automakers used deceptive tactics to trick customers into agreeing to share data with brokers, the senators said in a statement on Friday.

After reading a report in The New York Times, 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 sharing the data. GM also confirmed that it shared customer location data with two other companies that the automaker declined to name, the letter said.

Verisk used the data to create driving behavior reports and sold them to insurance companies, the letter said. Some automakers may have deceived their customers by promoting the disclosure of the data as a way to lower insurance bills without telling them that some insurers might charge higher fees, the senators wrote.

“If the FTC finds that these companies have violated the law, we urge you to hold the companies and their officers accountable,” the senators wrote to Khan.

GM would not say how much vehicle data it shared with brokers or how much it paid for it, according to the letter. Wyden’s office found that Hyundai shared data on 1.7 million vehicles and received just over $1 million for it, while Honda received just under $26,000 for data on 97,000 vehicles, the senators said.

A message was left after business hours on Friday requesting a response from the FTC.

In an email, GM denied that it deceived customers and tricked them into signing up for the data-sharing program with Verisk. The data-sharing partnerships with Verisk and LexisNexis were terminated in March and the “Smart Driver” data-sharing program ended in June, GM said.

“Data was only passed on to an insurer if a customer obtained a quote directly from the insurer of his choice and gave that insurer separate consent,” the email said.

The company said it shares “anonymized” data with partners to improve city infrastructure and make streets safer.

Hyundai said in a statement that the senators’ letter misrepresents the company’s privacy policies and that the company has safeguards in place to ensure that customers consent to sharing driving information with insurers.

Customers would have the opportunity to forward their driving results to their insurers via Verisk and thus benefit from possible advantages such as discounts for good driving, it said.

“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 has explicitly consented to this on an insurer’s website or app,” Hyundai said.

Honda also said customers had to sign up for the program with Verisk. Some customers with good driving records were given the opportunity to accept discount offers from insurers. “Without this clear second consent from the customer, no identifiable consumer information was shared with an insurance company,” Honda said.

Verisk also disagreed with Wyden and Markey, saying in a statement that it “works to ensure data is accessed and used appropriately.” The company said responsible data management is “the cornerstone of our business.”

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