Modern-day cars come with a mile-long list of features, many boasting of some very high-tech software backing. But while the over-arching aim is to make your drive more comfortable and convenient, there is a growing suspicion that automakers may also be collecting and then selling personal data of owners to third-party vendors. This suspicion was recently highlighted by two US senators who pointed accusatory fingers at Honda and Hyundai.

Senators Ron Wayden and Edward Markey have written to Federal Trade Commission (FTC), asking it to investigate automakers revealing driving data of Americans to data brokers. The letter, seen by HT Auto, points to investigative reports published by New York Times which highlight this issue. The letter further elaborates that ‘Senator Wyden’s office conducted follow-up oversight into three auto manufacturers — GM, Honda, and Hyundai — that shared data with the data broker Verisk Analytics.’ It is mentioned that these companies ‘confirmed their disclosure of drivers’ data to Verisk, such as acceleration and braking data.’

How your data is being shared to determine your insurance

As per the letter to FTC by the two senators, Verisk acts as a credit agency for drivers. It is mentioned that a particular product from Verisk scored drivers on their driving habits using data from inter-connected cars. It is said that carmakers shared driver's data with Verisk which used it to prepare its Driving Behavior Data History reports which were then sold to auto insurance companies. This particular product was shut down in April of this year, post New York Times reportage on the matter.

But the focus is on car companies. It is stated that Honda, for instance, shared data from 97,000 cars with Verisk in the four years since 2020. Data of those who signed on in Honda Driver Feedback program on the official company mobile application were used. In the case of Hyundai, the letter says, the company began sharing data from 2018 on cars where owners had turned on in-car internet connectivity. Shockingly, the senators in the letter say these owners were not even informed by the company of this.

While Honda has reportedly said data of only customers who had opted to be part of Driver Feedback Program was shared, and that these customers were aware they would get a driving score, there has been no response yet from Hyundai US.

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