The selling of driving behavior data by automobile manufacturers (Hyundai, Tesla, Kia, Volkswagon, and Nissan) to car insurance companies, often without the explicit consent of the vehicle owners, has raised significant privacy concerns and legal questions. This practice involves the collection of detailed driving data through connected cars, which is then shared with or sold to third-party data brokers like LexisNexis. These data brokers analyze the data to create risk scores for insurers, potentially affecting insurance premiums for drivers.
The following automobile manufacturers have been identified as collecting and potentially selling or sharing driving behavior data:
- Nissan – Collects a wide range of information, including sexual activity, health diagnosis data, and genetic data.
- Volkswagen – Collects demographic data for marketing purposes.
- Kia – Privacy policy states the company can collect information about consumers’ sex life.
- Tesla – Ranked at the bottom in the Mozilla report, with allegations of potential privacy violations from outward-facing cameras.
- Hyundai – Identified as one of the worst privacy violators.
It is important to note that the Mozilla Foundation’s “Privacy Not Included” survey found that 19 out of 25 car brands researched say they can sell personal data, and 84% share or sell data. More than half of these brands would share information with government or law enforcement upon informal request. Renault and Dacia were noted as exceptions, offering drivers the option to have their data deleted.
While we don’t know if that is the complete list of all automobile manufacturers involved in these practices, but what it does highlight is the widespread nature of data collection and and this concerning practice of selling it in the automotive industry. Consumers should be aware of their vehicle’s data privacy settings and the terms of service agreements to better understand how their data may be used.
Privacy and Consent Issues
The collection and sharing of driving behavior data highlight critical privacy issues, particularly regarding the consent process. Many drivers are unaware that their data is being collected and shared, as consent is often buried in lengthy terms of service agreements or privacy policies that few read. For example, a driver discovered a 258-page report detailing every trip made over six months, including instances of speeding, hard braking, and sharp accelerations, without realizing this information would be shared with insurance companies.
Legal and Regulatory Landscape
The practice has attracted the attention of regulators and lawmakers. The Federal Trade Commission (FTC) has taken action against data brokers for unfair and deceptive practices, such as selling sensitive consumer location data without proper consent. State laws, such as California’s Delete Act, are also targeting data brokers by requiring them to register with the state and disclose the types of personal information collected.
Impact on Insurance Premiums
The data shared by automobile manufacturers can be used by insurance companies to adjust premiums based on actual driving behavior rather than general information like demographics or vehicle type. This means that drivers who engage in behaviors deemed risky by the data analysis could face higher insurance costs, even if they have not been involved in accidents.
Recommendations for Drivers
Drivers concerned about their privacy should review the data-sharing and privacy settings of their connected cars and opt-out where possible. They can also request their consumer disclosure reports from data brokers like LexisNexis to understand what information is being shared. Additionally, advocating for stronger legal protections and transparency around data collection and sharing practices is crucial.
In conclusion, the sale of driving behavior data by automobile manufacturers to insurance companies through third-party data brokers have raised significant privacy concerns and questions about consent. As the legal and regulatory landscape evolves, it is essential for drivers to be informed and proactive about protecting their data. Moreover, there is a need for clearer consent mechanisms and greater transparency from automobile manufacturers and data brokers regarding data collection and sharing practices.