US Senators Urge FTC Crackdown on Automakers’ Data Sharing

On July 26, 2024, U.S. Senators Ron Wyden and Edward J. Markey urged the FTC to investigate automakers’ unauthorized disclosure of driver data to data brokers. Wyden’s investigation revealed that GM, Honda, and Hyundai shared driving and location data with Verisk Analytics without obtaining informed consent from drivers. This investigation follows increased scrutiny of automakers’ data privacy practices, highlighted by recent investigative stories from the New York Times.

Key Findings:

• GM shared customer location data and driving data, using dark patterns to enroll consumers in data-sharing programs. GM disclosed sharing data from its Smart Driver program and general internet-connected cars without informed consent.
• Honda shared data from 97,000 cars with Verisk, earning $25,920. Honda’s enrollment process for its Driver Feedback program used deceptive tactics to obscure data-sharing practices.
• Hyundai shared data from 1.7 million cars with Verisk, earning over $1 million. Hyundai automatically enrolled consumers who activated their car’s internet connection into a data-sharing program without their explicit consent.

Automakers are said to have employed dark patterns and deceptive claims, implying that shared data would only be used to lower insurance bills. However, it was revealed that telematics data could also lead to higher insurance premiums. Only a few US states prohibit the use of such data to increase premiums.

The senators highlighted that these practices could be just the “tip of the iceberg,” suggesting further investigation into automakers’ relationships with other data brokers. They emphasized that selling driver data without consent, particularly for profit, is unacceptable. Given the potential harm to consumers from increased insurance costs and the manipulation through dark patterns, the senators urged the FTC to hold both automakers and data brokers accountable.

Call to Action

The senators called for:

• Broad FTC investigation into auto industry practices.
• Accountability for automakers and data brokers.
• Responsibility for senior company officials for privacy abuses.

The ongoing scrutiny underscores the importance of transparent and lawful data practices in the automotive industry.

Read the press release here.