In a recent development, US Senators Ron Wayde and Edward Markey have raised concerns about Honda and Hyundai selling driver data to data broker Verisk Analytics for minimal profits. This revelation has put automakers under increased scrutiny regarding their data collection practices and the transparency of sharing this information with third parties, particularly insurance companies.
According to the senators’ letter to the US Federal Trade Commission, Honda shared data from 97,000 cars with Verisk between 2020 and 2024. This data was collected from owners who opted into Honda’s Driver Feedback program through the company’s mobile app. Surprisingly, Honda received only $25,920 from Verisk for this data, translating to just 26 cents per car. On the other hand, Hyundai sold data from 1.7 million vehicles to Verisk between 2018 and 2024, generating approximately $1 million, or 61 cents per car.
The senators also highlighted that Hyundai enrolled users in its Driving Score program without informing them, automatically sharing their data with Verisk. This practice of selling driver data to third parties has raised concerns about the potential misuse of personal information and the lack of consent from users.
Furthermore, the letter accused automakers of making deceptive claims about the benefits of these programs, focusing on potential discounts rather than the possibility of rate hikes. This lack of transparency in disclosing data sharing practices has prompted calls for an investigation by the FTC to ensure consumer privacy and data protection.
Both Honda and Hyundai responded to the allegations, emphasizing their commitment to data privacy and customer consent. Honda stated that it collected data responsibly and in compliance with privacy laws, offering transparency and choice to customers regarding the sharing of their data. Hyundai clarified that customer consent was required for sharing driving behavior information with insurers through its Drive Score feature, which has since been discontinued.
Overall, the issue of automakers selling driver data to data brokers raises important questions about data privacy, consent, and consumer protection. As technology advances, it is crucial for companies to prioritize transparency and accountability in handling sensitive personal information to maintain trust with their customers. The FTC’s investigation into these practices will hopefully lead to better regulations and safeguards to protect consumer data in the future.
