FTC Bans General Motors From Selling Customer Driving Behavior Data

General Motors and OnStar are barred from selling customer geolocation and driving behavior data for the next five years under a settlement with the Federal Trade Commission (FTC).

The agreement comes after a New York Times investigation revealed that GM collected detailed information about drivers’ habits and sold it to insurance companies and data brokers, often without customers’ knowledge or consent.

The investigation found that GM gathered highly specific information through its OnStar-connected vehicle service, including details about acceleration, braking, and trip lengths. This data was sold to third-party brokers such as LexisNexis and Verisk, as well as insurance companies that used it to adjust premiums.

Many customers were unaware of the practice until they received unexplained increases in their insurance costs. Last year, the state of Texas sued General Motors over the program.

The FTC accused GM of misleading customers during the enrollment process for its OnStar Smart Driver feature by failing to disclose that their driving data would be sold to third parties. Following public backlash, GM discontinued the OnStar Smart Driver program. In an unsigned statement, the company reiterated its commitment to customer privacy but did not address the FTC’s allegations directly.

FTC Chair Lina Khan described the automaker’s actions as an invasion of privacy, stating, “GM monitored and sold people’s precise geolocation data and driver behavior information, sometimes as often as every three seconds. With this action, the FTC is safeguarding Americans’ privacy and protecting people from unchecked surveillance.”

The settlement requires GM to obtain explicit customer consent before collecting driving behavior data, provide customers with the option to access and delete their data, halt the sale of geolocation and driver behavior data for five years.

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