Senators Ron Wyden of Oregon and Edward J. Markey of Massachusetts called the attention of the Federal Trade Commission (FTC) to investigate carmakers that sell user data.
The senators emphasized that several automakers conduct a controversial practice of selling user data without any consent from their customers.
Senators Seek Probe on Alleged Selling of User Data
The senators sent a letter to the FTC, addressing several concerns about the selling of Americans' driving data to data brokers. It also mentioned a recent public awareness of the situation after the New York Times report.
Three big auto manufacturers, GM, Honda, and Hyundai, were classified in the letter. The office of Wyden conducted a follow-up oversight on the companies and discovered that they share data with data broker Verisk Analytics.
Once the drivers' data is sold to Verisk, the broker company will then sell the reports to auto insurance companies. Some of the information includes the customer's location data, driving score, and driving suggestions.
Senators Accuse Automakers of Using 'Dark Patterns'
FTC defined dark patterns as the usage of manipulative designs to push services to its customers and obtain consent to share data. The commission previously revealed that the practice is commonly used by big companies, including Amazon and Adobe, which are both under investigation.
The senators detailed that customers are lured to enroll in the optional Driver Feedback Program or Smart Driver Program. The lengthy terms and conditions have buried the statement that Verisk would receive their data once they agree.
"It is particularly insulting for automakers that are selling cars for tens of thousands of dollars to then squeeze out a few additional pennies of profit with consumers' private data," the senators wrote.
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