FTC’s Data-Sharing Order Against GM Concludes With New Privacy Requirements
The FTC has settled with GM, banning certain consumer data sharing while ensuring more transparency for drivers.
The order was influenced by reports showing GM and OnStar had been collecting and selling drivers’ location and driving data. This data came from GM’s free Smart Driver program, which tracked how people drove and used their seatbelts. Some of this collected information was sold to insurance companies, affecting drivers’ rates, as the reports mentioned.
GM ended the Smart Driver program in April 2024. They said this was because of feedback from customers. GM also stopped their partnerships with data brokers like LexisNexis and Verisk.
The FTC said GM’s enrollment process was confusing and didn’t inform users that their data would be sold. Because of this decision, GM must now ask for drivers’ clear permission before collecting any connected car data. When someone buys a GM car, they will be asked if they agree to this data collection.
There are some important exceptions. GM can still share location data with emergency services and for research. They explained that they work with places like the University of Michigan to use data for city planning.
GM is also required to let customers see their data and ask for it to be deleted. They must make it possible for drivers to stop sharing their precise location data. GM said they have already started following these new rules.
Starting in 2024, GM has changed how they handle data and privacy. They now have a clearer statement on privacy and a program that lets customers see and delete their personal information.
GM expressed its commitment to customer privacy and trust, stating that they want customers to understand how their data is used. They state that these changes reflect concerns raised by regulators.
Correction: The earlier article mistakenly said GM needed permission for all data collection. The requirement is for specific types of data only.