FTC Consent Order Restricts GM/OnStar Sale of Connected-Car Location and Driving Data

The U.S. Federal Trade Commission (FTC) finalized a 20-year consent order with General Motors (GM) and its subsidiary OnStar after alleging the companies collected and sold precise geolocation and driving behavior data from millions of drivers without valid consent. The FTC said GM’s now-discontinued Smart Driver feature was presented as a driving-habits tool while enabling extensive telematics collection (including location and behavior signals such as braking and speed), with data flowing to third parties and ultimately being used by insurers in ways that could affect premiums or coverage decisions.

Under the order, GM is banned for five years from sharing consumers’ geolocation and driving behavior data with consumer reporting agencies. For the full term of the order, GM must obtain express consent before collecting, using, or sharing connected-vehicle data (with limited exceptions such as emergency services), and must provide consumer controls including the ability to opt out/disable precise geolocation collection, request copies of their data, and seek deletion. Reporting also notes GM shut down Smart Driver in 2024 amid backlash and said it ended related third-party telematics arrangements tied to data brokers such as LexisNexis and Verisk.