Ever get the feeling you’re being watched? It may not be paranoia. According to a New York Times report GM’s OnStar ‘Smart Driver’ has been surreptitiously — and unknowingly — funnelling data on drivers’ habits to third parties including insurers, which are using the information to jack up premiums.It comes after dozens of drivers in the US reported receiving exorbitant premium hikes without explanation or even knowing why..As it turns out the Smart Driver software, which is meant to be a kind of driving coach, collects information on everything from the vehicle’s rate of speed, braking distance and steering — even logging how many ‘close calls’ a driver has had by measuring how often and how hard the pedals are stomped.It offers users ‘badges’ for slow braking, gentle acceleration, seat belt use and other metrics of supposedly good driving.And it’s not just GM. Lexus has a similar app and other manufacturers such as Honda, Subaru, Hyundai and Ford have sensors built-in to record driving data which is downloaded when the vehicle is serviced..“The driving behaviour insights can only be shared when a customer explicitly consents through an insurance carrier to have the data shared,”GM.As per the Times, the third party data clauses are buried in the user agreement and often unwittingly and unknowingly agreed to. That’s not withstanding it can be turned on at the dealer without the buyer’s knowledge. That’s because salespeople get bonuses for successful enrolment of customers in OnStar services.In some cases it doesn’t get turned off when the car is resold.In response, the company replied that customers often opt into these services to learn more about their safe driving behaviours or vehicle performance that, with their consent, could be used to obtain insurance quotes with the aim of reducing insurance costs.And in fact, OnStar offers automobile insurance of its own that it says “rewards safe drivers” using the data obtained by its software.“The driving behaviour insights can only be shared when a customer explicitly consents through an insurance carrier to have the data shared,” GM said in a statement..“This uncontextualized, misleading and personal driving information on Plaintiff’s consumer disclosure harms Plaintiff’s ability to purchase car insurance. Moreover, notwithstanding the extreme frustration and dissatisfaction with the entire ordeal, these disclosures harm Plaintiff’s solitude and peace of mind.”Statement in US District Court South Florida.That’s notwithstanding the generic OnStar user privacy statement that mentions the data can be shared with “third-party service providers on your behalf” without explicitly mentioning insurance providers.That prompted a Palm Beach man on Wednesday to file suit in US District Court for Southern Florida against GM for sharing data from his Cadillac.The suit claims that GM and LexisNexis violated state and federal laws, including the Fair Credit Reporting Act, Florida’s Deceptive and Unfair Trade Practices Act, and privacy statutes.“Plaintiff is informed and believes that General Motors and OnStar sold and/or shared Plaintiff’s driving data without his knowledge or consent,” according to the filing. “This uncontextualized, misleading and personal driving information on Plaintiff’s consumer disclosure harms Plaintiff’s ability to purchase car insurance. Moreover, notwithstanding the extreme frustration and dissatisfaction with the entire ordeal, these disclosures harm Plaintiff’s solitude and peace of mind.”In addition, the California Protection Agency is currently investigating automaker’s data collection practices. Meanwhile, Massachusetts Senator Edward Markey has encouraged the Federal Trade Commission to investigate the practice as well.
Ever get the feeling you’re being watched? It may not be paranoia. According to a New York Times report GM’s OnStar ‘Smart Driver’ has been surreptitiously — and unknowingly — funnelling data on drivers’ habits to third parties including insurers, which are using the information to jack up premiums.It comes after dozens of drivers in the US reported receiving exorbitant premium hikes without explanation or even knowing why..As it turns out the Smart Driver software, which is meant to be a kind of driving coach, collects information on everything from the vehicle’s rate of speed, braking distance and steering — even logging how many ‘close calls’ a driver has had by measuring how often and how hard the pedals are stomped.It offers users ‘badges’ for slow braking, gentle acceleration, seat belt use and other metrics of supposedly good driving.And it’s not just GM. Lexus has a similar app and other manufacturers such as Honda, Subaru, Hyundai and Ford have sensors built-in to record driving data which is downloaded when the vehicle is serviced..“The driving behaviour insights can only be shared when a customer explicitly consents through an insurance carrier to have the data shared,”GM.As per the Times, the third party data clauses are buried in the user agreement and often unwittingly and unknowingly agreed to. That’s not withstanding it can be turned on at the dealer without the buyer’s knowledge. That’s because salespeople get bonuses for successful enrolment of customers in OnStar services.In some cases it doesn’t get turned off when the car is resold.In response, the company replied that customers often opt into these services to learn more about their safe driving behaviours or vehicle performance that, with their consent, could be used to obtain insurance quotes with the aim of reducing insurance costs.And in fact, OnStar offers automobile insurance of its own that it says “rewards safe drivers” using the data obtained by its software.“The driving behaviour insights can only be shared when a customer explicitly consents through an insurance carrier to have the data shared,” GM said in a statement..“This uncontextualized, misleading and personal driving information on Plaintiff’s consumer disclosure harms Plaintiff’s ability to purchase car insurance. Moreover, notwithstanding the extreme frustration and dissatisfaction with the entire ordeal, these disclosures harm Plaintiff’s solitude and peace of mind.”Statement in US District Court South Florida.That’s notwithstanding the generic OnStar user privacy statement that mentions the data can be shared with “third-party service providers on your behalf” without explicitly mentioning insurance providers.That prompted a Palm Beach man on Wednesday to file suit in US District Court for Southern Florida against GM for sharing data from his Cadillac.The suit claims that GM and LexisNexis violated state and federal laws, including the Fair Credit Reporting Act, Florida’s Deceptive and Unfair Trade Practices Act, and privacy statutes.“Plaintiff is informed and believes that General Motors and OnStar sold and/or shared Plaintiff’s driving data without his knowledge or consent,” according to the filing. “This uncontextualized, misleading and personal driving information on Plaintiff’s consumer disclosure harms Plaintiff’s ability to purchase car insurance. Moreover, notwithstanding the extreme frustration and dissatisfaction with the entire ordeal, these disclosures harm Plaintiff’s solitude and peace of mind.”In addition, the California Protection Agency is currently investigating automaker’s data collection practices. Meanwhile, Massachusetts Senator Edward Markey has encouraged the Federal Trade Commission to investigate the practice as well.
