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The FTC’s data-sharing order against GM is finally settled
The FTC has finalized an order prohibiting General Motors (GM) and its OnStar service from sharing certain consumer data with reporting agencies. The order mandates transparency and explicit consent for data collection, following concerns about misuse of driver data. GM has taken steps to enhance privacy practices, including the discontinuation of the Smart Driver program and allowing consumers to manage their data.
Key points
- FTC finalized an order against GM and OnStar to prevent sharing consumer data with reporting agencies.
- Requires GM to be transparent and obtain explicit consent from consumers for data collection.
- The order follows a New York Times report about GM's collection and sale of geolocation data, which impacted insurance rates.
- GM discontinued the Smart Driver program in April 2024 due to customer feedback.
- The FTC alleged GM misled consumers during enrollment for the OnStar service.
- GM allowed to share location data for emergencies and internal research, with de-identified data shared with partners like the University of Michigan.
- Consumers can request copies of their data, seek deletion, and disable geolocation data collection.
Why it matters
- Increasing concerns over consumer data privacy have led to more regulatory scrutiny in the tech industry.
- The move aligns with 2025 IT Trends focusing on data governance and consumer consent.
- Similar regulatory actions in other industries (e.g., tech and financial services) highlight the growing emphasis on data ethics.
The finalized order by the FTC marks a significant step in protecting consumer data and represents a shift towards greater transparency in vehicle data practices, ensuring users have more control over their information.