Senators call on Federal Trade Commission to investigate automakers' sale of driving data to brokers
Two U.S. senators are calling on the Federal Trade Commission to investigate automakers selling customers’ driving data to brokers who package it and then sell it to insurance companies
DETROIT — Two U.S. senators are calling on the Federal Trade Commission to investigate automakers selling customers' driving data to brokers who package it and then sell it to insurance companies.
In a letter to FTC Chairwoman Linda Khan, Democrats Ron Wyden of Oregon, and Edward Markey of Massachusetts allege that General Motors, Hyundai, Honda and perhaps others are sharing drivers' data, such as sudden braking and acceleration.
The automakers, the senators said in a statement Friday, used deceptive tactics to manipulate customers into signing up for disclosure of the data to brokers.
After reading a report in The New York Times, Wyden's office looked into the three automakers and found that they shared data with broker Verisk Analytics. In the letter to Khan, the senators wrote that all three automakers confirmed disclosure of the data. GM also confirmed that it disclosed customer location data to two other companies that the automaker would not name, the letter said.
Verisk used the data to prepare reports on driving-behavior history and sold them to insurance companies, the letter said. Some automakers may have deceived customers by advertising data disclosures as a way to reduce insurance bills, without telling them that some insurers could charge more, the senators wrote.
“If the FTC determines that these companies violated the law, we urge you to hold the companies and their senior executives accountable,” the senators wrote to Khan.
GM wouldn't say how many cars' data was sent to brokers or what it was paid, according to the
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