Lawmakers expose low price of driver data after automaker probe

Automakers are paid shockingly little to share their customer data with third parties, according to a Congressional probe.

The big picture: Senators Edward J. Markey and Ron Wyden submitted a letter to the Federal Trade Commission (FTC) after conducting a short investigation into driving and location data sold by three automakers: Hyundai, General Motors, and Honda.

Flashback: Wyden and Markey launched their oversight probe earlier this year in response to a New York Times story raising awareness over data-sharing practices in the auto sector.

The intrigue: All three brands worked with one data broker, Verisk Analytics, over a period of several years.

• Verisk’s goal was to sell the information to insurance firms, allowing them to base rates on car owners’ driving habits.

• General Motors and Honda made data disclosure voluntary but kept Verisk’s involvement “obscured.”

• Hyundai drivers were automatically enrolled into the automaker’s data-sharing program upon connecting their car to the internet.

By the numbers: The prices offered for the data were surprisingly low. Hyundai earned 61¢ per unit, while Honda made 26¢. Chump change considering some user data sells for hundreds of dollars per individual.

A closer look: According to the New York Times, General Motors may have shared data from more than 8 million vehicles.

• Wyden and Markey also accused the brand of using manipulative techniques, or “dark patterns,” to get consumers to agree with the automaker’s privacy policy.

Bottom line: It isn’t clear if the three brands violated the law or if the FTC will launch a criminal probe of its own. But there likely will be an increase in public awareness of how data is being used and how little it takes for automakers to justify selling it.

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