GM sold driver data for profit, then killed the program when news broke. Now it's settled with the FTC over the matter.

General Motors – once a trusted symbol of American innovation – was outed last year for secretly collecting and selling drivers' detailed driving information without their consent, with its OnStar Smart Driver technology.

The FTC has reached a proposed settlement with GM, prohibiting the automaker from sharing customer geolocation and driving behavior data.

“GM monitored and sold people’s precise geolocation data and driver behavior information, sometimes as often as every three seconds,” FTC Chair Lina Khan said in a statement. “With this action, the FTC is safeguarding Americans’ privacy and protecting people from unchecked surveillance.”

The US Federal Trade Commission has reached a settlement with General Motors Co. over claims the automaker deceived drivers by collecting their personal data and sharing it with third parties.

General Motors will be banned for five years from disclosing data that it collects from drivers to consumer reporting agencies as part of a settlement with the government to resolve claims that the automaker shared such data without consumers’ permission.

GM sold precise driver data collected through OnStar and a discontinued feature called Smart Driver. The information could have hiked insurance rates.

General Motors failed to disclose to customers that it tracked their precise locations and driving behavior and sold the data to third parties, the Federal Trade Commission alleged in a proposed order.

General Motors reached an agreement to settle allegations that the automaker shared drivers’ locations and behavior data without their consent, the Federal Trade Commission said.

The automaker was accused of collecting drivers' behavior data without their knowledge and providing it to third-party agencies that set insurance rates.

In March 2024, a New York Times report uncovered how connected cars with built-in telematics share driver statistics and data with insurers, often without the owners