Senators urge FTC to probe automakers’ data sales to brokers

DETROIT — A pair of U.S. lawmakers are urging the Federal Trade Commission to look into car manufacturers selling clients’ driving information to brokers who bundle it and then vend it to insurance firms.

In a communication to FTC Chairwoman Linda Khan, Democrats Ron Wyden of Oregon, and Edward Markey of Massachusetts assert that General Motors, Hyundai, Honda and possibly others are distributing drivers’ information, such as abrupt braking and acceleration.

The car companies, as stated by the lawmakers on Friday, utilized misleading strategies to influence customers into enrolling for divulgence of the information to brokers.

Following the analysis of a report in The New York Times, Wyden’s office probed the three car manufacturers and uncovered that they shared information with broker Verisk Analytics. In the communication to Khan, the lawmakers mentioned that all three car companies verified the divulgence of the information. GM also confirmed that it revealed customer location information to two other firms that the carmaker did not disclose, the communication stated.

Verisk used the information to compile reports on driving behavior history and peddled them to insurance firms, the communication stated. Some car manufacturers may have misled customers by promoting data disclosures as a means to lower insurance payments, without informing them that some insurers could demand more, the lawmakers wrote.

“If the FTC determines that these companies violated the law, we urge you to hold the companies and their senior executives accountable,” the lawmakers wrote to Khan.

GM would not disclose how many cars’ information was sent to brokers or the amount it received, according to the communication. Wyden’s office discovered that Hyundai shared information from 1.7 million vehicles and received slightly over $1 million, while Honda received just under $26,000 for information from 97,000 vehicles, the lawmakers stated.

A message was left Friday after business hours seeking input from the FTC.

In an email, GM refuted the claim that it misled customers into joining the data-sharing program with Verisk. Data-sharing partnerships with Verisk and LexisNexis were terminated in March, and its data-sharing program named “Smart Driver” concluded in June, GM stated.

“Data was only shared with an insurer if a customer triggered a quote directly with their chosen carrier and provided a separate consent to that carrier,” the email said.

The company mentioned that it does share “de-identified” data with partners to assist city infrastructure and enhance road safety.

In a statement, Hyundai mentioned that the lawmakers’ letter misrepresents its data policies and that it has precautions to ensure customers consent to sharing driving information with insurers.

Customers, it stated, had the choice to link driving scores to their insurers through Verisk for potential benefits such as good-driving discounts.

“It is important to note that Verisk was not authorized by Hyundai or the customer to share the Drive Score data with insurers until the customer affirmatively consented to this on an insurer’s website or app,” Hyundai said.

Honda also stated that customers had to choose to participate in the program with Verisk. Some customers with good driving scores were presented with the opportunity to accept discount offers from insurers. “Without that clear second opt-in by the customer, no identifiable consumer information was shared with any insurance company,” Honda said.

Verisk also disputed Wyden and Markey and stated in a communication that it “acts to ensure data is accessed and used appropriately.” The company mentioned that utilizing data responsibly “is the foundation of our business.”