General Motors (GM) has agreed to pay a fine and implement new policies after the Federal Trade Commission (FTC) found that the company collected driver data without consent from customers. The data included precise locations, driving habits, and vehicle identification numbers.
To sign up for OnStar’s connected car services, customers were told it was a game-like program called “Smart Driver” that used driver behavior data to improve their driving. However, the FTC alleges GM did not disclose its intention to sell the data to third parties, including consumer reporting agencies.
As part of the settlement, GM will be barred from disclosing driver data to consumer reporting agencies for five years and must obtain affirmative express consent before collecting or sharing data. The company also agreed to let customers disable location collection and request copies and deletion of their data.
The case highlights the importance of obtaining clear consent from customers when collecting personal data. Businesses must ensure they provide transparent notice about why they need information, what it will be used for, and how it will be shared. This includes being upfront about sensitive data, such as precise geolocation tracking and driver behavior data.
Source: https://www.ftc.gov/business-guidance/blog/2025/01/when-it-comes-personal-information-put-your-customers-drivers-seat-lessons-ftcs-settlement-gm-onstar