The Federal Trade Commission (FTC) has initiated action against General Motors (GM) and its subsidiary, OnStar, alleging that they collected, used, and sold precise geolocation and driver behavior data from millions of vehicles without adequately informing or obtaining consent from consumers. According to the FTC, GM's enrollment process for OnStar and the Smart Driver feature was misleading, leaving some consumers unaware of the extent of data collection and its subsequent sale to consumer reporting agencies. The data, collected as often as every three seconds, included sensitive information such as hard braking, nighttime driving, and speeding, which was reportedly used by insurance companies to determine rates.
Under a proposed order, GM and OnStar are barred for five years from sharing driver data with consumer reporting agencies and must improve transparency in their practices. The companies are required to obtain affirmative consent before collecting data, allow consumers to review and delete their information, and enable them to disable precise geolocation tracking. The FTC’s consent agreement will undergo a 30-day public comment period before a final decision is made. FTC Chair Lina M. Khan emphasized the importance of protecting Americans’ privacy and limiting the misuse of sensitive data through such actions.
