FTC Takes Action Against GM for Selling Driver Data Without Consent

The automaker faces a five-year ban on sharing sensitive geolocation and driving behavior data after settling with the FTC over privacy violations.

GM's OnStar Smart Driver program collected precise geolocation and driver behavior data, which was sold to third-party firms without drivers' consent.
The data was used by companies like Verisk and LexisNexis to create risk scores that influenced insurance premiums, often negatively impacting consumers.
The FTC settlement bans GM from sharing geolocation and driving behavior data with consumer reporting agencies for five years and mandates clearer data collection practices.
GM ended its Smart Driver program in 2024 and terminated relationships with data brokers involved in the unauthorized sharing of driver data.
The settlement is open to public comment for 30 days before finalization, while other automakers face scrutiny for similar privacy concerns.