Senators Call For FTC Investigation Into Automakers' Data Sharing

U.S. Senate votes on aid, in Washington

Two U.S. senators have urged the Federal Trade Commission to look into allegations that automakers are sharing customers' driving data with brokers who then sell it to insurance companies. The senators, in a letter to FTC Chairwoman Linda Khan, claim that General Motors, Hyundai, and Honda, among others, have been involved in sharing data such as sudden braking and acceleration without full disclosure to customers.

The senators allege that the automakers used deceptive tactics to convince customers to agree to the data sharing with brokers. Following a report in The New York Times, it was revealed that General Motors, Hyundai, and Honda had shared data with broker Verisk Analytics. General Motors also disclosed customer location data to two undisclosed companies.

Verisk Analytics reportedly used the data to create reports on driving behavior history, which were then sold to insurance companies. The senators expressed concern that some automakers may have misled customers by promoting data disclosure as a means to lower insurance costs, without informing them that it could potentially lead to higher premiums.

The senators called on the FTC to investigate the matter and hold the companies and their executives accountable if any laws were violated. General Motors confirmed the data sharing but denied deceiving customers, stating that data was only shared with insurers if customers provided separate consent.

Automakers accused of using deceptive tactics to obtain customer consent for data sharing.

Senators allege GM, Hyundai, Honda shared driving data without full disclosure.

GM, Hyundai, Honda shared data with broker Verisk Analytics for insurance reports.

Hyundai and Honda also defended their data-sharing practices, emphasizing that customers had to opt into the programs with Verisk Analytics and that no identifiable consumer information was shared with insurers without explicit customer consent.

Verisk Analytics, in response to the allegations, asserted that it ensures data is accessed and used appropriately and that responsible data usage is fundamental to their business.

Both General Motors and Hyundai have since terminated their data-sharing partnerships with Verisk Analytics, with General Motors ending its data-sharing program called 'Smart Driver' earlier this year. The companies stated that they share de-identified data with partners to support city infrastructure and enhance road safety.