Federal Trade Commission Contemplates Halting General Motors from Sharing Connected Vehicle OnStar Data
The Federal Trade Commission (FTC) has announced a settlement with General Motors (GM) and its subsidiary OnStar, effective in January 2025. The settlement addresses allegations that GM and OnStar collected, used, and sold drivers' precise location and driving behavior data without proper consent, constituting deceptive practices [2][3].
Key specifics of the settlement include: - A five-year ban on providing drivers' personal data to insurance companies and other third parties to protect consumer privacy [4]. - Measures to ensure transparency and prevent deceptive collection and sharing of driver data, including explicit consumer consent requirements [2][3].
The settlement is part of broader FTC enforcement actions targeting technology companies for selling or sharing consumer data deceptively, similar to other recent actions (e.g., against Avast for browsing data) [2].
In addition to the five-year ban, the settlement requires GM to obtain affirmative customer consent to collect, use, or disclose certain types of connected vehicle data [1]. To exercise privacy rights, customers can visit GM's US Consumer Privacy Request Form or call 1-866-MYPRIVACY (1-866-697-7482) [5].
GM has also agreed to discontinue its partnership with consumer reporting agencies, such as LexisNexis and Verisk, for telematics [1]. The data, including details like hard braking, late-night driving, and speeding, was reportedly used by consumer reporting agencies to influence insurance rates.
As part of the settlement, GM has expanded a privacy program to provide customers in all 50 states with options to access and delete their personal information [1]. The company is more committed than ever to making policies and controls clear and accessible.
The complaint alleges that GM misled consumers during the OnStar service enrollment process [1]. To address this, the settlement includes steps GM has already taken to establish choices for customer data collection and communications about how the information is used [6].
The FTC's move marks its first enforcement related to connected vehicle data [1]. The agreement duration is 20 years [4]. Although this settlement resolves the FTC's allegations, consumers should remain vigilant as regulatory scrutiny continues beyond this settlement [1].
In summary, the FTC settlement specifically bans GM from sharing driver behavioral and location data with insurers or others for five years without consent, requiring improved transparency and protecting consumer privacy against deceptive data practices [2][4].
- The settlement between the Federal Trade Commission (FTC) and General Motors (GM) and its subsidiary OnStar, effective in 2025, includes a five-year ban on providing drivers' personal data to insurance companies and other third parties to protect consumer privacy.
- The settlement also necessitates measures to ensure transparency and prevent deceptive collection and sharing of driver data, including explicit consumer consent requirements.
- The FTC's move is part of broader enforcement actions targeting technology companies, with a focus on policy-and-legislation and data-and-cloud-computing, aimed at curbing deceptive practices in the realm of technology and general-news.
