Two U.S. senators, Ron Wyden of Oregon and Edward Markey of Massachusetts, have requested the Federal Trade Commission to look into claims that certain automakers are selling customers’ driving data to brokers who then resell it to insurance companies. The senators allege that General Motors, Hyundai, Honda, and potentially other automakers have been sharing drivers’ data, including details like sudden braking and acceleration, with these brokers.
According to a statement from the senators, they believe that the automakers employed deceptive tactics to persuade customers to agree to the disclosure of their data to brokers. An investigation initiated by Wyden’s office following a report in The New York Times uncovered that the mentioned automakers shared data with the broker Verisk Analytics. The letter to FTC Chairwoman Linda Khan detailed that all three automakers confirmed the sharing of this data. General Motors was also confirmed to have shared customer location data with two undisclosed companies.
The data obtained by Verisk was utilized to produce reports on driving behavior history, which were then sold to insurance companies. The senators expressed concerns that some automakers might have misled customers by promoting data disclosures as a means to lower insurance costs, without informing them that certain insurers could potentially raise prices based on the shared information.
General Motors clarified that it did not mislead customers into participating in the data-sharing program with Verisk. The partnerships with Verisk and LexisNexis were terminated in March, and GM’s data-sharing program called “Smart Driver” was discontinued in June. The company asserted that data was only shared with insurers if customers initiated a quote directly with their selected carrier and separately consented to it.
Hyundai responded by stating that the senators’ interpretation of their data policies was inaccurate and highlighted that they have mechanisms in place to ensure that customers agree to share driving information with insurers. Customers were reportedly given the option to link driving scores to their insurers through Verisk to potentially receive benefits such as discounts for good driving.
Honda echoed a similar sentiment as Hyundai, indicating that customers had to opt into the program with Verisk. Customers with favorable driving scores were presented with discount offers from insurers but only after a clear second opt-in by the customer, ensuring that no identifiable consumer information was shared without explicit consent.
Verisk defended its practices and claimed that it operates to guarantee that data is accessed and used appropriately. The company emphasized its commitment to responsibly utilizing data, stating that it forms the foundation of its operations.