General Motors (GM) and its subsidiary OnStar have agreed to a settlement with the Federal Trade Commission (FTC) that prohibits them from sharing driver location and behavior data with third parties for five years. This decision follows allegations that GM collected and sold data from millions of vehicles without proper consumer consent. The data, which includes precise geolocation and driving behavior, could influence insurance rates. The FTC’s action comes after GM had already ceased sharing such data with companies like LexisNexis due to public backlash. The settlement defines “consumer reporting agency” as any firm that collects or evaluates consumer information for reports. A New York Times report highlighted how this data sharing operates, noting that insurance companies access this data through consumer consent during insurance shopping. A class-action lawsuit against GM, OnStar, and LexisNexis also alleges consumer deception and harm.
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