General Motors has reached a settlement with the Federal Trade Commission (FTC) over its Smart Driver program, which collected precise geolocation data from millions of OnStar vehicles without driver consent. The FTC alleged that GM provided this data to telematics analysis firms like Verisk and LexisNexis, who used it to raise insurance rates for drivers deemed high-risk.
GM claims to have ended the program in April 2022 due to customer feedback, but critics say the practice is a “terrible” way to collect and share driver location data. The proposed consent decree requires GM to obtain explicit consent from drivers before collecting connected vehicle data, with exceptions for emergency services.
The FTC’s action comes amid growing concerns over the sharing of sensitive consumer data. The Commerce Department has also taken steps to safeguard national security by prohibiting the sale or import of vehicles integrating certain foreign-made software and hardware components. With a change in administration looming, the proposed settlement is open to public comment until next month.
Source: https://www.theregister.com/2025/01/17/gm_settles_ftc_charges