WASHINGTON, D.C. — The Federal Trade Commission (FTC) has initiated its first enforcement action involving connected vehicle data, alleging that General Motors (GM) and its subsidiary OnStar collected and sold sensitive geolocation and driving behavior data from millions of vehicles without adequate consumer knowledge or consent. According to the FTC, these practices violated consumer privacy and resulted in data misuse by third parties, including consumer reporting agencies.
FTC Chair Lina M. Khan emphasized the severity of the accusations, stating, “GM monitored and sold people’s precise geolocation data and driver behavior information, sometimes as often as every three seconds. With this action, the FTC is safeguarding Americans’ privacy and protecting people from unchecked surveillance.”
Under the proposed settlement, GM and OnStar are prohibited from disclosing consumers’ precise geolocation and driving behavior data to consumer reporting agencies for five years. The companies must also implement measures to enhance transparency and consumer control over their connected vehicle data. Major provisions of the proposed order include:
- Affirmative Consent: GM and OnStar must obtain clear and explicit consumer consent before collecting connected vehicle data, with limited exceptions such as emergencies.
- Data Access and Deletion: The companies are required to create mechanisms allowing consumers to request their data, as well as delete it if desired.
- Opt-Out Options: Consumers must have the ability to disable precise geolocation tracking and restrict the collection of driving behavior data from their vehicles.
- Ban on Misrepresentation: GM and OnStar are prohibited from misrepresenting how they collect, use, or disclose connected vehicle data.
The FTC’s complaint highlighted GM’s allegedly misleading enrollment process for its OnStar service and the Smart Driver feature. These programs collected detailed information about driving habits, such as hard braking, late-night driving, and speeding. The complaint states that GM sold this data to consumer reporting agencies, which subsequently influenced insurance rates and coverage decisions. Some drivers only became aware of these practices after experiencing negative financial consequences.
The FTC’s action emphasizes growing concerns about the increasing collection of sensitive data through connected devices. The case also sets a precedent for regulating the use of connected vehicle data, with implications for other automakers and technology companies leveraging similar systems.
This enforcement marks a significant move toward protecting consumer privacy, addressing potential misuse of personal data, and holding companies accountable for transparent data practices in a rapidly evolving digital landscape.
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