Letter to FTC Reveals Manufacturers Are Selling Drivers Personal Data
The second letter to the FTC asks for investigations into Hyundai, GM and Honda...
A recent letter to the Federal Trade Commission states that multiple automakers have been selling user data to third-party brokers without customers’ knowledge or permission, according to Car & Driver.
The letter focuses on data sold by GM, Hyundai, and Honda to data broker Verisk. The data broker then sold this user data to various auto insurers to help insurers determine risk factors.
The biggest takeaway is how little money each brand made. Both Hyundai and Honda revealed they were paid less than $1 per car. Honda received over $25,000 and Hyundai received a little over $1 million for its 1.7 million data points. GM provided data for nearly 8 million vehicles but did not reveal the payout amount.
Verisk had shut down their program following a similar report that came to light in early March. Senators are urging senators urging the FTC to investigate these data sales and hold senior executives responsible.
Read the full report from Car & Driver here.
