GM Data Sharing Ban: Driving & Location Data with Insurers

Data Privacy Concerns Emerge Regarding General Motors

Reports are surfacing concerning the practice of companies commercializing sensitive personal data, including precise location information. Recent allegations point to General Motors as a potential offender in this area.

FTC Alleges Improper Data Handling by GM and OnStar

The Federal Trade Commission (FTC) contends that General Motors, along with its OnStar service – a subscription-based vehicle safety and security system – gathered, utilized, and sold detailed geolocation data and driving patterns from a substantial number of vehicles. This occurred, the FTC claims, without sufficient notification to consumers or obtaining their explicit permission.

Consequently, the agency has proposed an order to prohibit the company from selling this type of data to credit reporting agencies for a period of five years.

Concerns Over OnStar Enrollment and Data Collection

The FTC’s complaint highlights what it describes as a “misleading enrollment process” used to encourage consumers to subscribe to OnStar. Some individuals reportedly were unaware they had enrolled in OnStar’s Smart Driver feature, which was presented as a tool to enhance driving performance and promote safer habits.

“GM tracked and sold individuals’ precise location data and driving behavior, sometimes at intervals as frequent as every three seconds,” stated FTC Chair Lina M. Khan.

Recent Challenges for General Motors

This situation represents another challenge for the automotive manufacturer in recent weeks. Last month, GM ceased funding for its Cruise autonomous vehicle division, an entity in which the company had invested over $10 billion.

Investigation Triggered by New York Times Report

The proposed FTC settlement follows an investigation conducted by Kashmir Hill of The New York Times. Hill’s reporting revealed that GM had been collecting detailed information about customer driving habits – including instances of hard braking, nighttime driving, and speeding – and then selling this data to insurance companies and data brokers. This resulted in increased insurance costs for drivers who were unable to determine the cause.

Broader Implications of Data Misuse

The potential for misuse extends beyond higher insurance premiums. A person’s location data can reveal highly personal information, such as their home and work addresses, as well as visits to sensitive locations like medical facilities or religious institutions. Such data, if compromised, could pose significant risks, particularly for individuals seeking reproductive healthcare.

Proposed FTC Order and GM’s Response

If approved by a court, the FTC’s proposed order would prevent GM and OnStar from sharing data with consumer reporting agencies. Furthermore, the companies would be required to obtain explicit consent from consumers before collecting any vehicle data going forward.

The order also mandates that GM allow customers to access and delete their data, and to limit the amount of data collected from their vehicles.

GM released a statement indicating that the FTC’s consent order reflects actions the company has already taken to provide customers with control over their data and transparency regarding its use.

The automaker confirmed that it discontinued its Smart Driver program last year, removed enrolled customers, and ceased selling telematics data to LexisNexis and Verisk, analytics companies.

“In September, we consolidated many of our U.S. privacy statements into a single, simpler statement as part of our broader work to keep raising the bar on privacy,” the GM statement reads. The company also highlighted its expanded privacy program, offering customers in all 50 states the ability to access and delete their personal information.