Senators Urge FTC Investigation into Automakers' Data Practices

DETROIT – U.S. Senators Ron Wyden and Ed Markey are pressing the Federal Trade Commission (FTC) to investigate allegations that automakers are selling customers' driving data to brokers, who then sell it to insurance companies. Their concerns were sparked by a report from The New York Times, which revealed that several automakers, including General Motors (GM), Hyundai, and Honda, have shared driving data with broker Verisk Analytics. The senators noted that GM confirmed the disclosure of customer data, including location information, to unnamed companies. The senators highlighted potential consumer deception, suggesting that automakers marketed data-sharing as a means to lower insurance costs while failing to inform customers that some insurers might actually raise their rates. According to the findings, Hyundai shared data from 1.7 million vehicles, earning over $1 million, while Honda received nearly $26,000 for data from 97,000 vehicles. The senators have reached out to the FTC for further investigation into these practices. In response, GM denied any wrongdoing, asserting that it shares only "de-identified" data to support city infrastructure and safety initiatives. Hyundai defended its data-sharing policies, stating that customers must provide explicit consent before their data is shared with insurers. Honda echoed this sentiment, emphasizing that participation in the data-sharing program was voluntary. Verisk Analytics also responded, asserting that it ensures data is accessed and used responsibly, which it claims is fundamental to its operations. The ongoing scrutiny raises significant questions about consumer privacy and the ethical implications of data sharing in the automotive industry.