General Motors and its subsidiary OnStar have reached an agreement with the U.S. Federal Trade Commission (FTC) to halt the disclosure of consumers’ sensitive geolocation and driver behavior data to consumer reporting agencies for the next five years, the FTC said on Thursday.
The settlement follows allegations that General Motors collected, used, and sold precise geolocation data and driving behavior information from millions of vehicles without adequately notifying customers or obtaining their consent. Such data could potentially influence insurance rates, according to the FTC.
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In response, General Motors noted that it had discontinued its Smart Driver program in 2023, which was designed to analyze driving habits and provide feedback to promote safer driving. “We’re more committed than ever to making our policies and controls clear and accessible as we continue to evolve the driving experience for our customers,” the company said in a statement.
As part of the settlement, GM is required to secure explicit driver consent before collecting data, and to provide drivers with the ability to delete or restrict their data.
The case is one of several initiatives pushed by the Democrat-led FTC as part of a broader effort to enhance consumer privacy protections. The settlement was not without controversy, however, as the FTC’s two Republican commissioners voted against pursuing the case.
By prioritizing transparency and consent, GM aims to rebuild trust with consumers in an era where data privacy remains a critical concern for automakers and regulators alike.
Source: Reuters