DETROIT — Two U.S. senators are calling on the Federal Commerce Fee to research automakers promoting clients’ driving knowledge to brokers who package deal it after which promote it to insurance coverage firms.
In a letter to FTC Chairwoman Linda Khan, Democrats Ron Wyden of Oregon, and Edward Markey of Massachusetts allege that Common Motors, Hyundai, Honda and maybe others are sharing drivers’ knowledge, akin to sudden braking and acceleration.
The automakers, the senators stated in a press release Friday, used misleading techniques to control clients into signing up for disclosure of the information to brokers.
After studying a report in The New York Occasions, Wyden’s workplace regarded into the three automakers and located that they shared knowledge with dealer Verisk Analytics. Within the letter to Khan, the senators wrote that every one three automakers confirmed disclosure of the information. GM additionally confirmed that it disclosed buyer location knowledge to 2 different firms that the automaker wouldn’t identify, the letter stated.
Verisk used the information to organize studies on driving-behavior historical past and bought them to insurance coverage firms, the letter stated. Some automakers could have deceived clients by promoting knowledge disclosures as a method to cut back insurance coverage payments, with out telling them that some insurers may cost extra, 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 what number of vehicles’ knowledge was despatched to brokers or what it was paid, in keeping with the letter. Wyden’s workplace discovered that Hyundai shared knowledge from 1.7 million autos and was paid simply over $1 million, whereas Honda obtained slightly below $26,000 for knowledge from 97,000 autos, the senators stated.
A message was left Friday after enterprise hours in search of remark from the FTC.
In an e-mail, GM denied that it deceived clients into enrolling within the data-sharing program with Verisk. Information-sharing partnerships with Verisk and LexisNexis have been canceled in March, and its data-sharing program known as “Smart Driver” resulted in June, GM stated.
“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,” the e-mail stated.
The corporate stated it does share “de-identified” knowledge with companions to assist metropolis infrastructure and make roads safer.
In a press release, Hyundai stated the senators’ letter mischaracterizes its knowledge insurance policies and that it has safeguards to ensure clients comply with sharing driving info with insurers.
Clients, it stated, had the choice to attach driving scores to their insurers via Verisk for attainable advantages akin to good-driving reductions.
“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 stated.
Honda additionally stated that clients needed to decide into this system with Verisk. Some clients with good driving scores got the prospect to comply with low cost affords from insurers. “Without that clear second opt-in by the customer, no identifiable consumer information was shared with any insurance company,” Honda stated.
Verisk additionally disagreed with Wyden and Markey and stated in a press release that it “acts to ensure data is accessed and used appropriately.” The corporate stated utilizing knowledge responsibly “is the cornerstone of our business.”
