Lawmakers have called for an investigation into automakers’ sharing of millions of Americans’ driving data with data brokers without their consent, according to a letter sent to the Federal Trade Commission (FTC). Senators Ron Wyden and Edward J. Markey pointed to an investigation by Wyden’s office on General Motors (GM), Honda, and Hyundai. These automakers were found to have shared driver data, including acceleration and braking information, with data broker Verisk Analytics. Verisk used this data to create driving behavior history reports that were sold to auto insurance firms. The companies were accused of violating the law and using manipulative design techniques to coerce consumers into enrolling in their programs. The letter also revealed that GM failed to disclose to customers that their driving data would be shared with data brokers and resold to insurance companies. Honda and Hyundai were also found to have shared data without obtaining informed consent from consumers.
The senators’ letter emphasized that the practices uncovered are likely just the tip of the iceberg. They argued that companies should not be selling Americans’ data without their consent, especially considering the high price of cars. The lawmakers found it insulting that automakers, who sell cars for tens of thousands of dollars, would profit further by selling consumers’ private data for just a few pennies.
In response to the allegations, GM denied deceiving customers and stated that data-sharing partnerships with Verisk and LexisNexis were canceled earlier this year. Hyundai also denied the allegations and said that the senators’ letter mischaracterized its data policies. Honda claimed that customers had to opt into the program with Verisk and that no identifiable consumer information was shared with insurance companies without clear consent from the customer.
This issue of data compromise in the automotive industry extends beyond these automakers. A report from the Mozilla Foundation warned that several automakers collect personal data from consumers and sell or share it with third parties. Most car owners are unaware of the amount of private data being collected and how it is used. Car manufacturers, navigation and infotainment companies, and telecom operators all have access to different types of data collected from vehicles.
Concerns about data collection from vehicles made by China have also emerged, prompting the Biden administration to investigate. The undersecretary of Commerce for Industry and Security explained that certain components and software of vehicles need to be made in allied countries to ensure data security. Modern cars have extensive software that collects information such as call logs, navigation history, and even biometric and financial details.
In conclusion, the investigation into automakers’ sharing of driving data highlights the need for stricter regulations and consumer consent when it comes to data privacy. The practice of selling personal data without informed consent is a violation of consumers’ rights and undermines their trust in automakers. Moving forward, it is essential for lawmakers and regulatory bodies to hold companies accountable and establish clear guidelines to protect consumers’ data privacy in the automotive industry.
