"Two years ago, the New York Times report released a report detailing how GM's OnStar "Smart Driver" program collected and sold detailed geolocation and driving behavior data to third parties, including data brokers. Those brokers in turn sold the data to insurance providers, which jacked up the rates for some drivers based on the data. "It felt like a betrayal," said a Chevy Bolt owner that saw his insurance rise by 21 percent based on the data."
"According to the terms of the settlement, GM is barred from sharing specific user data with consumer reporting agencies for a five year period. The automaker is also required to request user permission before collecting, using or sharing vehicle data with any third party. It must do that when a consumer purchases a car at a dealership, with the customer asked in person whether they agree or not with the data collection, GM said."
The Federal Trade Commission banned General Motors from sharing specific consumer vehicle data with third parties and barred sharing with consumer reporting agencies for five years. GM must obtain explicit user permission before collecting, using, or sharing vehicle data, with consent requested in person at vehicle purchase. GM ended the OnStar Smart Driver program in April 2024, unenrolled customers, and cut third-party relationships with LexisNexis and Verisk. OnStar Smart Driver had collected and sold detailed geolocation and driving-behavior data to data brokers and insurers, which led to higher insurance rates for some drivers. GM faced lawsuits from multiple states.
Read at Engadget
Unable to calculate read time
Collection
[
|
...
]