In a letter sent to the Federal Trade Commission (the US consumer protection agency) late last week, US Senators Ron Wayde and Edward Markey revealed that Honda e Hyundai They allegedly sold drivers’ data to Verisk Analytics, a data broker. All the while earning a few cents per name.
This is a news story that is causing quite a stir in the United States where, in recent months, car manufacturers have been subjected to increasing scrutiny regarding their data collection policies and the way they obtain consent to share it with third parties. Investigations have revealed how some car manufacturers have sold driver information to data brokers (people or companies that collect and organize data of various kinds) who then sold it to insurance companies.
How much is data worth?
According to the letter, Honda shared data on 97,000 cars with Verisk between 2020 and 2024. Information collected as a result of joining the program Driver Feedback at Hondawho received $25,920 in return. That’s just 26 cents per motorist.
Honda Driver Feedback
Hyundai instead sold to Veriskbetween 2018 and 2024, a greater amount of data relating to users who activated the Internet connectivity of their car, automatically enrolling in the Driving Score program of the House, but without being informed, at least according to the US senators. Hyundai would have sold the data of 1.7 million vehicles earning about 1 million dollars, or 61 cents per car.
Also General Motors is among a group of brands that sold data to Verisk, but no information has been received from Detroit about the number of cars involved or the amount received.
Hyundai Driving Score
(Un)clear agreements
In their letter, Senators Wayne Markey also accuse the automakers of having spread misleading claims on the benefits of enrolling in their programs, highlighting potential discounts, but not mentioning how the data is handled. Wayde and Markey have asked FTC Chairwoman Lina Kahn to investigate how automakers disclose and share consumer data.
In the meantime Motor1 USA contacted Honda and Hyundai to ask for clarification and confirmation of the numbers published in the letter. Here are the answers:
Honda
“Under the subscription-based Driver Feedback Program, Honda contracted with Verisk to facilitate a service for Honda customers where, upon request, driving data was collected and assigned a score that the customer would receive along with a contextual overview of their driving behaviors. Certain consumers with particularly high driving scores were presented with the opportunity to elect to receive discounts from specific participating insurance companies. In the absence of a second clear opt-in from the customer, no identifiable consumer information was shared with any insurance company. Honda collects and uses data responsibly and in compliance with all privacy laws. Our customers can be assured that Honda will transparently disclose both the collection and use of data and will always offer its customers the choice to share or sell their personal data. Customer satisfaction is our top priority.”
This is Hyundai’s (long) response instead
“Unfortunately, Senator Wyden’s letter mischaracterizes Hyundai’s data policies and the safeguards it has implemented to ensure customer consent to share driving behavior information with insurers. The letter also inaccurately describes the consent required from customers to share driving behavior data with Verisk, a third-party data sharing service provider. Drive Score was launched as a value-add for Bluelink customers to better understand their driving habits. Customers had the option to link their Drive Score to their insurance to unlock potential benefits, such as a discount for driving more efficiently, improving their travel experience and potentially saving on insurance costs. The ‘Drive Score’ insights based on each customer’s vehicle usage were only activated once the customer opted into Hyundai’s BlueLink suite of connected car services. Opting in included the customer’s consent to provide Drive Score data to Verisk for the purpose of facilitating the sharing of Drive Score information with insurance companies, if the customer subsequently opted in. Verisk paid Hyundai for the potential future earnings of customers who opted in to the feature. It is important to note that Verisk was not authorized by Hyundai or the customer to share Drive Score data with insurers until the customer opted in on the website or app. Customers could always opt out of data collection through their MyHyundai account and privacy portal. We continually review how we use and share customer data. As of mid-March, Hyundai has decided to no longer offer Drive Score as part of its Bluelink system, and customer data is no longer shared as Verisk has discontinued the feature.”
The new treasure
Automakers seem eager to collect driving data and learn about habits like never before, but at what cost? Anything with a chip, an Internet connection, and a sensor or two can collect and transmit data that a company can then share and sell to various third parties, including insurance companies.
Source: it.motor1.com
