The Federal Trade Commission (FTC) has finalized an order that prohibits General Motors (GM) and its OnStar telematics service from sharing specific consumer data with consumer reporting agencies. This order, which follows a proposed settlement reached a year ago, mandates GM to enhance transparency with consumers and secure explicit consent for any data collection activities.
The order restricts GM from collecting and selling geolocation data to third parties, such as data brokers and insurance companies. This action was prompted by reports revealing how GM and OnStar utilized drivers’ precise geolocation data and driving behavior for commercial purposes.
GM’s Smart Driver program, integrated into its connected car apps, monitored driving behaviors and seatbelt use, with data brokers like LexisNexis and Verisk then selling this information to insurance providers, potentially impacting customers’ rates. Following customer feedback, GM discontinued the Smart Driver program in 2024 and terminated its relationships with data brokers.
The FTC accused GM and OnStar of misleading enrollment practices and insufficiently disclosing data collection and sharing policies. The finalized order requires GM to explicitly seek consumer consent before gathering, using, or sharing connected vehicle data, a process initiated during vehicle purchases at dealerships.
While some exceptions to the data collection ban exist, GM is now mandated to operate with greater transparency and consumer consent to uphold data privacy standards.
Source: TechCrunch