The FTC's data-sharing order against GM is finally settled | TechCrunch

"The Federal Trade Commission said Wednesday it has finalized an order that bans General Motors and its OnStar telematics service from sharing certain consumer data with consumer reporting agencies. The finalized order, which comes a year after the agency reached a proposed settlement with GM, also requires the automaker to be more transparent with its consumers and obtain their explicit consent on any data collection."

"The finalized order comes nearly two years after a New York Times report showed how GM and OnStar collected, used, and sold drivers' precise geolocation data and driving behavior to third parties, including data brokers LexisNexis and Verisk. The data was collected through GM's Smart Driver program, a free feature contained within its connected car apps that tracked and rated driving behaviors and seatbelt use. Data brokers sold this information to insurance providers, which could affect customers' rates, the NYT reported at the time."

"Under the order finalized Wednesday, GM is also required to obtain explicit consent from consumers prior to collecting, using, or sharing connected vehicle data. This process occurs at the dealership when a consumer buys a car from a GM brand. At that point, the OnStar system is linked to that particular vehicle VIN number and the new owner is asked whether they agree or not with data collection, according to GM."

The FTC finalized an order banning General Motors and OnStar from sharing certain connected-vehicle consumer data with consumer reporting agencies and requiring explicit consumer consent before collecting, using, or sharing such data. Nearly two years earlier, GM and OnStar collected, used, and sold drivers' precise geolocation and driving behavior through the Smart Driver program to third parties, including data brokers LexisNexis and Verisk. GM discontinued Smart Driver in April 2024, unenrolled customers, and ended those third-party telematics relationships. The FTC alleged misleading enrollment practices and inadequate disclosure. Consent must be obtained at dealerships when OnStar is linked to a vehicle VIN. Some limited exceptions to the ban apply.

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