When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.

GM responds to FTC's proposed five-year ban on selling customer data

The General Motors logo

General Motors (GM) has been around since the early 1900s and has grown to become a dominant force in the automotive industry. However, GM has also faced several controversies, such as when it was fined $35 million for delaying the recall of cars with faulty ignition switches, a defect linked to several deaths.

One of the latest controversies involves GM allegedly selling detailed driver data to insurance companies without customer consent. The data reportedly sold included details like vehicle speed, steering patterns, braking habits, seatbelt usage, driving time, and distance traveled.

In a recent press release, the Federal Trade Commission (FTC) took action against GM and OnStar (a GM subsidiary), proposing an order that will prevent both companies from sharing driver data for the next five years.

So, how was GM able to obtain this data? GM has a program called OnStar Smart Driver, which encourages customers to participate. OnStar Smart Driver collects information about driving behavior and sells it to companies like Verisk and LexisNexis Risk Solutions.

OnStar is a service that claims to provide "unprecedented peace of mind," according to its website, helping customers during emergencies and assisting with traffic and navigation. In the press release, the FTC accused GM of misleading customers into signing up for the program:

GM used a misleading enrollment process to get consumers to sign up for its OnStar connected vehicle service and the OnStar Smart Driver feature. GM failed to clearly disclose that it collected consumers' precise geolocation and driving behavior data and sold it to third parties, including consumer reporting agencies, without consumers' consent.

This allegation matches what New York Times reporter Kashmir Hill found last year when she went through the OnStar Smart Driver sign-up process and reported: "no mentions of the data being shared with third parties."

A series of screenshots of the GM OnStar sign up process
Image: New York Times

Under the FTC's proposed order, in addition to the five-year ban on sharing data, GM and OnStar are required to:

  • Get permission first: They must ask for clear consent before collecting any connected car data, with exceptions like providing location to emergency responders.
  • Give access to data: They must set up a system for customers to request a copy of their data and delete it if desired.
  • Let customers control what's collected: If the car's tech allows, customers should be able to turn off location tracking and opt out of having their driving behavior and location data collected, with a few exceptions.

After the press release went live, GM published a statement saying it had reached a settlement agreement with the FTC to "address privacy concerns about our now-discontinued Smart Driver program." GM added:

As part of the agreement, GM will obtain affirmative customer consent to collect, use, or disclose certain types of connected vehicle data (with exceptions for certain purposes). The duration of the agreement is 20 years.

The statement also mentioned that GM customers in the US who want to delete their personal information can visit the US Consumer Privacy Request Form or call 1-866-MYPRIVACY (1-866-697-7482).

GM isn't the only company the FTC has targeted recently. You may have heard that John Deere was finally sued by the commission over "unfair" business practices.

Report a problem with article
AirPods Max USB C
Next Article

Apple AirPods Max with USB-C is available at its lowest price ever

RTX 5000 with green background
Previous Article

Leaked Geekbench Nvidia 5090 performance vs 4090 is both impressive and disappointing

Join the conversation!

Login or Sign Up to read and post a comment.

12 Comments - Add comment