The Federal Trade Commission (FTC) announced Thursday that General Motors (GM) and its subsidiary OnStar will be prohibited from selling customers' driving data to third parties for the next five years, following an investigation into the company's data collection practices.
The investigation was sparked by a New York Times report revealing that GM had been gathering detailed information about customers' driving habits through its OnStar Smart Driver program, including acceleration patterns, braking frequency, and trip duration. This data was then sold to insurance companies and data brokers like LexisNexis and Verisk without proper customer consent.
The FTC found that GM used misleading enrollment tactics that left many vehicle owners unaware they had signed up for data collection. Some customers only discovered the practice after noticing unexplained increases in their insurance premiums.
"GM monitored and sold people's precise geolocation data and driver behavior information, sometimes as often as every three seconds," said FTC Chair Lina Khan in a statement.
Under the settlement terms, GM must:
- Stop sharing individual driver data with consumer reporting agencies for five years
- Obtain explicit customer consent before collecting driving behavior data
- Provide customers with clear options to access and delete their collected data
- Make it easier for drivers to disable vehicle location tracking
While the ban prevents GM from sharing individual driver information, the company can still provide anonymous driving data to third parties like road safety researchers.
GM has already discontinued its OnStar Smart Driver program and stated it is "committed to customer privacy." The company now allows customers to request deletion of their personal information through its website.
The FTC's action represents a major step toward protecting consumer privacy and limiting unchecked surveillance of driving behavior.