|
GM
and subsidiary OnStar, which operates a roadside assistance
service, will also be banned from sharing drivers' precise
geolocation and other data, and they will be required to provide
more transparency and choice over data linked to how consumers
use their vehicles, according to a proposed order released by
the Federal Trade Commission on Thursday.
In its complaint, the FTC alleged that Detroit-based GM used a
misleading enrollment process to get consumers to sign up for
OnStar's services and its Smart Driver feature, which the
automaker touted as a tool to help drivers assess their driving
habits.
The agency also claims the automaker failed to clearly disclose
to consumers that it would collect data on their precise
location and driving behavior, and then sell it to third
parties.
GM sold the data, including every instance when a driver was
speeding or driving late at night, to consumer reporting
agencies, which used it to compile credit reports and,
ultimately, provided it to insurance companies that used the
data to set their rates, the FTC claims.
“GM monitored and sold people’s precise geolocation data and
driver behavior information, sometimes as often as every three
seconds,” said FTC Chair Lina Khan. “With this action, the FTC
is safeguarding Americans’ privacy and protecting people from
unchecked surveillance.”
The automaker acknowledged the settlement agreement with the FTC
in a statement on its website Thursday, noting that its Smart
Driver offering was discontinued last year across all GM
vehicles and unenrolled all customers. GM also said it ended its
“third-party telematics relationships” with LexisNexis and data
broker Verisk Analytics.
The FTC launched its investigation after two U.S. senators
called on the agency last July to look into allegations that GM
and other automakers were sharing drivers' data with data
brokers.
All contents © copyright 2025 Associated Press. All rights reserved
|
|
