The Federal Trade Commission has initiated action against General Motors and OnStar for allegedly selling location and driving data from millions of GM vehicle owners without their informed consent. This data collection occurred as frequently as every three seconds.
Both companies have been prohibited from selling this data for a five-year period, and they must disclose any future data-sharing intentions while ensuring they obtain appropriate consent.
General Motors sold location and driving data
It is acknowledged that General Motors and OnStar gathered both location and driving data from users who enrolled in the OnStar connected vehicle service and the OnStar Smart Driver feature.
Information relating to harsh braking, speeding, and even late-night driving was sold to consumer reporting agencies that utilized it for creating profiles, which could lead insurance companies to raise rates or deny coverage.
The contention was over whether customers were adequately informed that this was included in their contract. GM and OnStar assert they provided proper notification, while the disagrees.
The Federal Trade Commission is taking action against General Motors (GM) and OnStar due to claims that they collected, utilized, and sold precise geolocation data and driving behavior information from millions of vehicles—data that can influence insurance rates—without properly informing consumers and securing their explicit consent […]
The accused Michigan-based GM of employing a misleading enrollment strategy to persuade consumers into signing up for the OnStar connected vehicle service and the OnStar Smart Driver feature. GM allegedly failed to transparently disclose the collection and sale of consumers’ precise geolocation and driving behavior data to third parties.
Five-year ban imposed
In order to resolve this issue, the has recommended a five-year ban on the sale of such data, in addition to measures ensuring that any potential future data sales are fully disclosed to consumers and only occur with their explicit consent.
Under a proposed agreement addressing the ’s charges, General Motors LLC, General Motors Holdings LLC, and OnStar LLC, all owned by General Motors Company, will face a five-year prohibition on disclosing sensitive consumer geolocation and driver behavior data to consumer reporting agencies. They are also required to implement additional measures for enhancing transparency and consumer choice regarding the collection, use, and disclosure of their connected vehicle data.
By accepting this proposal, GM and OnStar can resolve the situation without incurring further penalties.
Supports the case for CarPlay 2
CarPlay 2 would allow Apple to manage a significant portion of the vehicle’s data systems, including infotainment and driving instruments such as speedometers. However, two deadlines have already passed without any car manufacturers adopting it.
One reason auto manufacturers are hesitant to relinquish such control is their desire to collect data from their own systems. With CarPlay 2, access to this data would be limited, as it would be safeguarded by Apple’s robust privacy protocols.
This situation underscores the importance for consumers to choose vehicles from manufacturers who provide the new CarPlay standard.
Photo: General Motors
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