Wyden urges FTC action, accuses automakers of sharing driver data

PORTLAND, Ore. (KOIN) – Oregon’s U.S. Sen. Ron Wyden is calling for accountability among automakers after an investigation revealed new details about auto companies sharing driver’s information without their consent, according to the senator.

On Friday, Sen. Wyden (D-Ore.) and Sen. Ed Markey (D-Mass.) sent a letter to the Federal Trade Commission asking the agency to hold the automakers accountable after an investigation led by the senators found auto companies shared driver data with data brokers without the drivers’ consent. That information was then resold to insurance companies, according to the senators.

In some cases, the data-sharing made some drivers at risk of auto insurance hikes, the senators said.

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“It is particularly insulting for automakers that are selling cars for tens of thousands of dollars to then squeeze out a few additional pennies of profit with consumers’ private data,” Wyden and Markey said.

According to the senators, several automakers — including General Motors, Hyundai, and Honda — disclosed data on millions of Americans without their consent. That data included information on sudden braking and acceleration which would be sent to data brokers for subsequent resale to insurance companies.

In their letter, the senators said GM additionally confirmed they shared customer’s location data with other companies, which they “refused to identify.”

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Among their findings, the senators said they discovered Hyundai shared data from 1.7 million cars with data broker Verisk, which paid Hyundai over $1,043,000, or 61 cents per car for the data.

Additionally, Honda shared data from 97,000 cars with Verisk, which paid Honda over $25,000, or 26 cents per car, the senators claimed.

The lawmakers also accused the auto companies of using “deceptive design tactics” to manipulate consumers into signing up for programs that shared their data with data brokers, which would be up for resale to insurance companies.

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“The problematic practices we have uncovered and documented in this letter are likely just the tip of the iceberg,” Wyden and Markey wrote in the letter to FTC Chair Lina Khan. “We focused our oversight efforts on automakers’ relationship with one specific data broker in order to determine if there is a problem that warrants further oversight by federal regulators. Verisk has publicly confirmed it sold driver data from three automakers, but the media has reported that other data brokers, like LexisNexis, are still selling driver data.”

In January, the FTC banned two data brokers from selling location data from smartphone apps without consumer’s informed consent. Now, the senators are asking the FTC to apply this precedent and hold the automakers accountable for their disclosure of data.

“The FTC should hold accountable the automakers, which shared their customers’ data with data brokers without obtaining informed consent, as well as the data brokers, which resold data that had not been obtained in a lawful manner. Given the high number of consumers impacted, and the outrageous manipulation of consumers using dark patterns, the FTC should also hold senior company officials responsible for their flagrant abuse of their customers’ privacy,” the senators added.

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These practices by automakers were under scrutiny earlier in 2024 following a New York Times investigative series on automakers sharing driver data.

In a statement to KOIN 6 News, GM Spokesperson Malorie Lucich explained the auto company shares the “desire to protect consumers’ privacy while enhancing safety and innovation,” noting the company ended its Smart Driver program in June.

“We vehemently deny the assertion that we used ‘manipulative design techniques’ to coerce consumers into enrolling in Smart Driver. Each consumer was given choice at the time of enrolling and throughout the life of the product,” Lucich said.

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“To be clear, we established the Smart Driver product to promote safer driving behavior for the benefit of customers who elected to participate. Data was only shared with an insurer if a customer initiated a quote directly with their chosen carrier and provided a separate consent to that carrier,” Lucich explained, “As is common industry practice, we share de-identified data not associated with specific drivers or vehicles with select partners for purposes that include enhancing city infrastructure and road safety for pedestrians, cyclists, and drivers.”

In a statement to KOIN 6 News, Hyundai spokesperson, Ira Gabriel, said the senators’ letter “mischaracterizes Hyundai’s data policies.”

In its statement, Hyundai pointed to its Drive Score feature for Blue Link customers. Blue Link is an app that allows Hyundai drivers to retrieve information about their vehicle and for remote commands. According to the automaker, Drive Score was implemented for drivers to get a better understanding of their driving habits.

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“Customers had the option to connect their Drive Score to their insurance for potential benefits, such as a good driving discount, thereby enhancing their driving experience and potentially saving on insurance costs,” Gabriel said. “Each customer’s vehicle usage-based ‘Drive Score’ information was activated only after the customer affirmatively opted into Hyundai’s BlueLink connected car suite of services.”

“This opt-in included the customer’s agreement for the Drive Score data to be provided to Verisk for the purpose of facilitating the sharing of the Drive Score information with insurers should the customer later affirmatively consent. Verisk paid Hyundai for potential future earnings from customers who affirmatively opted into the insurance feature. 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,” Gabriel added.

According to Gabriel, Drive Score is no longer a feature and customer data is no longer being shared “as Verisk has discontinued the feature.”

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Honda spokesperson, Chris Martin, told KOIN 6 News “Honda operates from a customer-focused mindset, aiming to build trust with each customer that lasts a lifetime. Toward this goal, as with any modern company, Honda collects customer-related data by various means, including during the operation of our vehicles when equipped with connected capabilities. This is a part of our focused effort to improve and advance our products and provide our customers with better user experiences.”

Martin added, in part, “With the subscription-based Driver Feedback Program, Honda contracted with Verisk to facilitate a service for Honda customers where, upon expressly opting in, their driving data was collected and given a driving score that the customer would receive along with a contextual overview of their driving behaviors. Some consumers with favorable driving scores were presented opportunities to opt-in to receive discount offers from specific participating insurance companies.  Without that clear second opt-in by the customer, no identifiable consumer information was shared with any insurance company.”

The Federal Trade Commission confirmed to KOIN 6 News the agency received the letter from the senators but had no further comment.

KOIN 6 News reached out to General Motors, Verisk, and LexisNexis but did not receive a response. This story will be updated if we receive a response.

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