The FTC has proposed a settlement that prohibits General Motors and its subsidiary, OnStar, from selling geolocation and driver behavior data to credit agencies for five years, enhancing privacy for car owners. The issues stemmed from a New York Times investigation revealing that GM shared sensitive data with insurance firms, sometimes increasing premiums without drivers' awareness. The FTC charged GM with misleading practices in onboarding users to OnStar, where consent for extensive data sharing was not made clear. The settlement aims to prevent invasive data practices and promotes owner consent regarding data collection.
The FTC's proposed settlement will ensure GM and OnStar are banned from sharing driver behavior and geolocation data with credit agencies for five years.
The FTC complaint highlighted how GM misled customers in enrolling them into OnStar, which shifted from urgent services to extensive data sharing without clear consent.
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