The Federal Trade Commission (FTC) has finalized an order with General Motors to settle allegations that the automaker had collected and sold drivers’ location and behavior data without their consent.
A proposed order from the agency last year had hit GM with a five-year ban on data sharing. That punishment holds in the final order. “This fencing-in relief is appropriate given GM’s egregious betrayal of consumers’ trust,” the FTC said.
Additionally, for the next 20 years, GM will be required to obtain affirmative express consent from customers before sharing their vehicle data with consumer reporting agencies. The automaker should also make it easy for drivers to receive a copy of their shared data and request its deletion.
For the same period, GM must also provide drivers with the option to opt out of or disable location sharing in their cars.
There are a few exceptions to the ban, though. According to the FTC’s detailed order, GM will be allowed to share location data with emergency first responders and during law enforcement or regulatory proceedings.
They can also use the data to conduct internal research and improve the safety, services, and technology of their cars. However, they can only share “deidentified covered driver data” with third parties for this purpose.
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GM’s data-sharing malpractice was first reported by The New York Times in 2024. The report found that GM hadn’t disclosed its data-collection programs clearly to those who signed up for its OnStar service and the Smart Driver program.
The data collected was reportedly sold to consumer reporting agencies, leading customers to pay higher insurance premiums.
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Jibin is a tech news writer based out of Ahmedabad, India. Previously, he served as the editor of iGeeksBlog and is a self-proclaimed tech enthusiast who loves breaking down complex information for a broader audience.
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