GM Settles FTC Case on Driver Data Misuse

General Motors and OnStar have agreed not to share consumers' geolocation and driver data with reporting agencies for five years. The FTC alleged misuse of data without proper consent. GM ended its Smart Driver program and must adhere to new consent guidelines. The case was split along party lines within the FTC.

General Motors, along with its subsidiary OnStar, has reached an agreement with the U.S. Federal Trade Commission to cease sharing consumers' sensitive geolocation and driving behavior data with consumer reporting agencies for the next five years.

The FTC accused GM of collecting and selling detailed geolocation and driving behavior data on millions of vehicles, potentially impacting insurance rates, without sufficiently informing or obtaining consent from consumers. In response, GM terminated its Smart Driver program, originally designed to encourage safe driving by providing driver feedback.

In their settlement, GM committed to clearer policies, requiring driver consent for data collection and offering options to delete or restrict data. This case is one of several actions the internally divided, Democrat-led FTC is advancing prior to the upcoming presidential inauguration.

(With inputs from agencies.)