July 26th, 2024

Automakers Sold Driver Data for Pennies, Senators Say

Senators Wyden and Markey urged the FTC to investigate automakers like G.M., Honda, and Hyundai for selling driver data without consent, highlighting concerns over privacy and deceptive practices.

Read original articleLink Icon
Automakers Sold Driver Data for Pennies, Senators Say

Senators Ron Wyden and Edward Markey have urged the Federal Trade Commission (FTC) to investigate how automakers, including General Motors (G.M.), Honda, and Hyundai, handle driver data. Their concerns stem from revelations that these companies collect and sell data on driver behavior, such as braking and acceleration patterns, often without drivers' knowledge. The data is sold to insurance companies to assess risk, with payments to automakers being surprisingly low; for instance, Honda received about 26 cents per car over four years. The senators criticized the practice, emphasizing that automakers should not sell consumer data without consent, especially when they charge high prices for vehicles.

Hyundai reportedly enrolled all internet-connected cars in data sharing, while G.M. and Honda required customers to opt in, a process Wyden described as "deceptive." Following media scrutiny, the sharing of driving behavior data ceased, and Verisk, the analytics company involved, shut down its data exchange. G.M. continues to share anonymized location data without seeking customer consent, with the only opt-out option being to disable the car's internet connection. The FTC has received multiple requests from Congress to investigate this issue, and while it has solicited consumer reports, it has not confirmed any ongoing investigations.

Related

Chinese self-driving cars have traveled 1.8M miles on U.S. roads

Chinese self-driving cars have traveled 1.8M miles on U.S. roads

Chinese self-driving cars, like WeRide, Apollo, and Pony.ai, have driven 1.8 million miles in California since 2017. Concerns arise over data privacy and national security risks due to potential Chinese government access.

New technology and old tactics have made buying a car a death march of deception

New technology and old tactics have made buying a car a death march of deception

The article exposes car dealerships' deceptive tactics, illustrated by Mario Flores' experience at CardinaleWay Mazda. Jase Patrick's intervention reveals industry practices, FTC's CARS rule, and NADA's opposition, emphasizing consumer protection efforts.

FTC Issues Orders to Eight Companies Seeking Information on Surveillance Pricing

FTC Issues Orders to Eight Companies Seeking Information on Surveillance Pricing

The Federal Trade Commission orders eight companies to provide details on surveillance pricing using consumer data. Concerns raised about transparency and consumer protection in personalized pricing practices. Investigation targets firms like Mastercard and JPMorgan Chase.

FTC launches probe into 'surveillance pricing'

FTC launches probe into 'surveillance pricing'

The FTC investigates "surveillance pricing," where AI adjusts prices based on customer data. Eight companies, including Mastercard and JPMorgan Chase, face scrutiny over personalized pricing practices. Concerns about privacy risks are raised.

FTC Launches Probe into 'Surveillance Pricing'

FTC Launches Probe into 'Surveillance Pricing'

The FTC investigates "surveillance pricing," where AI adjusts prices based on customer data. Eight companies, including Mastercard and JPMorgan Chase, face inquiries. Concerns about privacy risks are raised. Companies like Mastercard and Revionics cooperate.

Link Icon 13 comments
By @cptcobalt - 3 months
> your car’s movements and exact location are being collected and shared anonymously with a data broker

> said that the company had gotten the precise location of about 10 million G.M. cars up to every one to three seconds, but that the data did not include identifying details about the driver.

The word "Anonymously" means exactly nothing here. If one's exact location and movements are collected, wouldn't that include a lot of time and datapoints where the car is spending time at work and home locations?

Seems incredibly trivial at that point to deanonymize usage.

By @rqtwteye - 3 months
The whole day broker industry needs to be made illegal. We should make it extremely tedious for companies to share data. Instead of giving broad permission on page 3876 of the TOS it should be required to get customer approval for every share and we should be able to know with whom our data is shared. “Anonymization” doesn’t work either. It’s way too easy to deanonymize most data.
By @tonetegeatinst - 3 months
Pro move: buy this data and make a torrent of it.

Then we can all analyze what they are collecting and can improve the visibility this issue gets. We really need better privacy laws in the US but laws can't move as fast as the tech sector does.

What company do I need to goto to buy this data?

By @Zelphyr - 3 months
Here's what I would like to see: A law that says that if any company sells any data associated with me then they must share 50% of the sale of that data with me in cash.

Maybe it's overly simplistic and definitely unrealistic but, there it is.

By @trte9343r4 - 3 months
Not just automakers. Several dealership install GPS trackers under dashboard to track inventory, and can not be bothered to remove it after sale. If your battery has parasitic current drain, and discharges when car sits idle for weeks, this is the most likely cause.

You should not have any expectations of privacy today.

By @celeritascelery - 3 months
I don’t know which is worse, that they sold my data or that it was worth so little.
By @tomrod - 3 months
Pennies, you say? That seems like a useful data asset at a deanonymized level, maybe rolled up to census tract or block groups, and with POI split out so you can investigate all sorts of things.

I don't really care where Ms. Wilkins next door takes her cats during the day, but if I were looking to buy a small business I might like to know which grooming service is drawing people from further away.

By @ZoomerCretin - 3 months
It was sold to the insurance industry so they could more accurately gauge the risk they face. It came to light because some particularly dangerous drivers found their insurance premiums rise to $500+/month.

The counter-example is the world where safe drivers much more heavily subsidize extremely bad drivers. If I have no accidents on my record in 10 years, and have every observable behavior that indicates low risk, why should I pay substantial amounts of money every year because the government does not want insurers to have the data to tell I'm not a high-risk driver?

By @strict9 - 3 months
By @blendo - 3 months
Check your owners manual to see if this type of data collection can be disabled. For our 2021 Mazda, it required a phone call to Mazda.

For real security, I’d like to pull the modem fuse, but i know neither which fuse to pull, nor if other systems might stop working.

By @Teever - 3 months
I want to know who did this.

It wasn't GM that did this. GM is an abstract entity composed of people.

Who specifically did this? We need to name and shame them.

This is only correct course of action in these situations.

So who specifically did this?

By @paxys - 3 months
Hmm, I wonder who has the authority to pass laws to prevent this.