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 it shared customer location data with unnamed companies, while Verisk utilized this data to create reports on driving behavior for insurers. The senators expressed concern that some automakers may have misled customers by promoting data-sharing as a means to lower insurance costs, without disclosing that it could lead to higher premiums for some. Their investigation revealed that 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 FTC has yet to respond to requests for comment. In response to the allegations, GM denied any deception regarding its data-sharing program, asserting that it only shares "de-identified" data to enhance city infrastructure and road safety. Hyundai defended its practices, stating that customers must consent to share their driving information with insurers, while Honda emphasized that participation in the program was voluntary. Verisk also countered the senators' claims, asserting its commitment to responsible data usage.