Recent reports have revealed that several major automakers are secretly sharing detailed driving data on their customers’ vehicles with insurance companies and third-party data brokers.
Recent new york times report reveals the worrying practices of automakers like GM, Honda, Kia, and Hyundai that secretly collect extensive information about their customers’ driving habits and share it with insurance companies and data brokers like LexisNexis and Verisk. I made it clear.
The car can be viewed at a Hyundai car dealership. On October 11, 2019, Hyundai Motors and Kia Motors agreed to settle a class action lawsuit over engine fires by paying customers who purchased some Hyundai and Kia models a total of $760 million. It was announced that. (Photo by Paul Hennessy/SOPA Images/LightRocket, Getty Images)
This data is collected through optional features like GM’s OnStar Smart Driver and Honda’s Driver Feedback, and includes details such as travel dates, distance, speed, hard braking situations, and sudden acceleration. These features are often touted as tools to help drivers improve their skills, but the fine print hidden in privacy policies and terms of use reveals a dark truth. This means that data is being shared with third parties without explicit consent from the driver.
The case of Ken Dahl, 65, a software company owner from Seattle, illustrates the seriousness of the situation. Dahl, a careful driver who has never been in an accident, was shocked to learn that his car insurance premiums had increased by 21% in 2022. When he requested a LexisNexis consumer report, he discovered a staggering 258 pages of documents detailing over 640 trips. He and his wife kept records of his Volt Chevrolet, including details such as date, time, distance, and instances of hard braking or acceleration.
Dahl’s experience is not isolated. Online forums dedicated to his various GM vehicles are filled with warnings and complaints from drivers who have experienced similar situations, with shared driving data resulting in insurance coverage denials or significantly lower premiums. Some people have reported that prices have increased.
The automakers and data brokers involved claim they obtained consent from drivers through opaque privacy policies and terms of service. However, many drivers claim they were unaware of being enrolled in such programs or the extent of data sharing.
Frank Pasquale, a law professor at Cornell University, expressed surprise at the practice, saying, “This is not within the reasonable expectations of the average consumer, so it’s hard to see something like this happening.” It should be industry practice to disclose such information.”
Policymakers have taken note of this worrying trend, with California privacy regulators launching an investigation into automakers’ data collection practices and Massachusetts Sen. Edward Markey filing a lawsuit with the Federal Trade Commission (FTC). ) to investigate possible violations of consumer protection laws.
The implications of this hidden data sharing extend beyond financial concerns. Privacy advocates say the collection and dissemination of such private driving information could have far-reaching effects, from impacts on insurance premiums to potential implications for employment opportunities and legal proceedings. I’m warning you that there is.
read more of new york times here.
Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues.
