The Article Tells The Story of:
- FTC targets General Motor and OnStar for selling driver behavior and location data.
- Sensitive data shared without proper consent, violating customer privacy.
- Ban lasts five years, impacting GM’s data-sharing practices with insurers.
- New transparency measures promise greater control for users.
FTC Prohibits GM from Sharing Driver Data for Five Years
The Federal Trade Commission (FTC) has imposed a five-year ban on General Motors (GM) and its subsidiary OnStar from sharing consumer data with third parties. The decision follows a report by The New York Times revealing that GM sold sensitive driver information to platforms used by insurance companies.
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The investigation uncovered that GM’s OnStar Smart Driver program collected data without explicit user consent. This program monitored driving habits like hard braking, speeding, and night driving. GM allegedly shared this data with LexisNexis Risk Solutions and Verisk, which then sold it to insurance companies.
Privacy Concerns Prompt Investigation in General Motor
The controversy began when customers realized their driving data was being monitored without their full understanding. Many participants in the OnStar Smart Driver program were unaware they had opted into it. This raised questions about transparency and consent in GM’s data collection practices.
FTC Chair Lina M. Khan stated that GM monitored drivers’ precise locations and behaviors, sometimes as often as every three seconds. She emphasized that this settlement protects consumer privacy and guards against unchecked surveillance.
Settlement Details and Future Policies
Under the settlement, General Motor and OnStar are prohibited from disclosing driver geolocation and behavior data to consumer reporting agencies for the next five years. They are also required to improve transparency in their data collection policies. This includes seeking affirmative customer consent and offering users access to their personal data with the option to delete it.
GM responded by confirming the termination of the Smart Driver program in 2022 due to customer feedback. The company stated that it had ended its agreements with third-party platforms and pledged to enhance user control over connected vehicle data.
Conclusion
This case highlights the growing concerns surrounding data privacy in the automotive industry. The FTC’s actions underscore the importance of clear communication and consent when collecting and sharing customer information. For GM, this serves as a lesson in prioritizing user trust and transparency.
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