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General Motors and OnStar have been banned from sharing consumers’ geolocation and driver behavior data with consumer reporting agencies for the next five years, following an investigation by the Federal Trade Commission (FTC). The FTC found that GM had been collecting data through its OnStar Smart Driver program, which monitored driving habits and location, sometimes as frequently as every three seconds. This information was then sold to third-party platforms, including telematics analysis firms such as Verisk and LexisNexis, without adequate consent from customers. These third-party companies then offered the driver data to insurance companies, who used it to raise premiums for drivers deemed to be 'high risk'.

The investigation revealed that many consumers were unaware that their data was being shared and sold, with some expressing concern that it directly impacted their insurance costs. GM has acknowledged these privacy concerns and has discontinued the Smart Driver program, as well as terminated its third-party telematics relationships with LexisNexis and Verisk. As part of the settlement with the FTC, GM must now take steps to improve transparency for its customers regarding data collection practices.


References :

• Ars OpenForum: GM sold geolocation and other driving data without adequate consent, FTC says.
• The Register - Security: We'll defo ask for permission next time, automaker tells FTC General Motors on Thursday said that it has reached a settlement with the FTC "to address privacy concerns about our now-discontinued Smart Driver program."
• www.ftc.gov: GM monitored and sold people’s precise geolocation data and driver behavior information, sometimes as often as every three seconds,
• Quartz: GM can't sell your location data for the next 5 years
• 9to5mac.com: The Federal Trade Commission (FTC) has taken action against General Motors and OnStar for selling location and driving behavior data from millions of GM car owners without proper consent, requiring both companies to halt such practices for five years.
• arstechnica.com: GM faces ban on selling driver data that can be used to raise insurance rates
• discuss.privacyguides.net: FTC proposes banning General Motors from disclosing geolocation and driving behavior data
• www.bleepingcomputer.com: The Federal Trade Commission (FTC) has announced action against General Motors (GM) and its subsidiary, OnStar, for unlawful collection and sale of drivers' precise geolocation and driving behavior data without first obtaining their consent.
• The Verge: Illustration: Alex Castro / The Verge General Motors and its subsidiary OnStar are banned from selling customer geolocation and driving behavior data for five years, .
• BleepingComputer: FTC orders GM to stop collecting and selling driver’s data
• BleepingComputer: The FTC has accused General Motors (GM) of collecting and selling drivers' precise geolocation and driving behavior data without their consent.
• 9to5Mac: FTC bans General Motors from selling driving data without permission, adding to case for CarPlay 2

Classification:

• HashTags: #Privacy #DataBreach #FTC
• Company: GM
• Target: GM Customers
• Product: OnStar Smart Driver
• Feature: Data Sharing
• Type: DataBreach
• Severity: Major