LANSING, Mich. (Michigan News Source) — As the battle over consumer privacy intensifies, two U.S. senators are demanding the Federal Trade Commission (FTC) investigate major automakers for allegedly selling sensitive driving data to brokers.

This began when senators Ron Wyden (D-Ore.) and Edward Markey  (D-Mass.) took action after reviewing a report from The New York Times. They alleged that automakers, including General Motors, Hyundai, and Honda, used deceptive practices to secure customer consent for data sharing. The senators’ letter to FTC Chairwoman Linda Khan states that these three companies shared sensitive driving data, such as sudden braking and acceleration patterns, with Verisk Analytics, which then sold the data to insurance firms.

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According to The Detroit News, financial details revealed in the senators’ investigation show Hyundai received over $1 million for data from 1.7 million vehicles, while Honda was paid just under $26,000 for data from 97,000 vehicles. General Motors, however, has not disclosed the extent of its data transactions. 

In their letter to Khan, the senators argued that some automakers misled customers by promoting data sharing as a way to potentially lower insurance premiums without adequately disclosing that it might also lead to higher rates. This lack of transparency is their primary concern.

General Motors, in response to the allegations, stated that it terminated its data-sharing partnerships with Verisk and LexisNexis in March and ended its “Smart Driver” data-sharing program in June, as reported by The Detroit News. The company said that data was only shared with insurers if customers initiated a quote and provided explicit consent, while also emphasizing its commitment to city infrastructure and road safety by sharing “de-identified” data with partners.

Hyundai pushed back against the allegations as well, claiming its data policies were misrepresented. The company said that it has safeguards in place to guarantee customer consent before sharing data with insurers. Hyundai clarified that customers have the option to opt-in and link their driving scores with insurers to potentially receive benefits such as good-driving discounts.

Similarly, Honda defended its practices, asserting that its program with Verisk required customers to opt-in and assured that no identifiable consumer information was shared without explicit consent.

Verisk Analytics, the broker at the center of the controversy, also stood by its policies, maintaining that it “ensures data is accessed and used appropriately” and that responsible data use is fundamental to its business.

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Nonetheless, the senators remain firm: “If the FTC determines that these companies violated the law, we urge you to hold the companies and their senior executives accountable.”