FTC Penalizes GM for Selling Driver Data Without Consent

• •FTC imposes a five-year ban on GM selling consumer data.
• •Consumers must now provide explicit consent for data collection.
• •Investigation revealed widespread poor privacy practices among automakers.

The Federal Trade Commission (FTC) finalized an order against General Motors (GM) and OnStar for collecting and selling consumers' geolocation and driving behavior data without adequate notification or consent. The order imposes a five-year ban on GM sharing this data with consumer reporting agencies and requires the company to obtain explicit consent from consumers before collecting or sharing their data. Consumers will also have the right to request their data and opt out of data collection. This action follows a broader investigation revealing that many automakers have poor privacy practices, with GM being one of the most egregious offenders. The FTC's decision aims to enhance transparency and consumer choice regarding connected vehicle data. The settlement is a response to growing concerns about privacy in the automotive industry, where data collection practices often go unnoticed by consumers.