US Senators Turn Up Heat On Automakers Over Sale Of Driver Data
A pair of influential U.S. senators are calling on automakers to come clean on how they handle driver data.
Sens. Ron Wyden, D-Ore., and Ed Markey, D-Mass., issued a call to automakers looking to reveal just what sort of data they were collecting from customer vehicles and what parts of that are getting shared with third parties.
The worry among lawmakers was that the automakers are collecting data under the guise of normal maintenance and then reselling that information to third-party data brokers who were in turn using the info to pitch advertisements.
“The FTC [Federal Trade Commission] 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,” said Wyden.
“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 letter (PDF) is part of an ongoing campaign the senators have waged in efforts to crack down on automakers who sell customer data to data brokers who, turn, gave that information to insurance companies.
One data broker in particular was singled out: Verisk Analytics.
“Verisk essentially acts as a credit agency for drivers. One of the company’s products, which it shut down in April 2024 following New York Times’ reporting, scored drivers on their safe driving habits using data from internet-connected cars,” the senators allege.
“Automakers shared drivers’ data with Verisk, which mined it to prepare Driving Behavior Data History Reports.”
In short, automakers are accused of collecting driver info and selling it to insurance brokers without any notification or consent.
The congressmen are now asking the FTC to bring automakers forward and come clean on their relationships with data brokers and insurance providers.
“We urge the FTC to broadly investigate these auto industry practices. 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,” the Senate duo wrote.
“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.”
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