ATLANTA — The Federal Trade Commission has finalized an order against General Motors and OnStar over allegations that the automaker was spying on drivers through its onboard computer systems.
The FTC issued an order just about a year ago, forcing them to stop after allegations that GM was collecting data from consumers about their driving through its OnStar system without their knowledge and then selling it.
Temeika Clay told Channel 2 consumer investigator Justin Gray that her car insurance skyrocketed 80% after GM sold the OnStar data being collected on her Chevrolet Camaro without her knowledge.
She learned that GM shared 603 entries with data brokers, including acceleration events, high-speed events, and hard brake events through what they call their Smart Driver Program.
“Never did I imagine it would be spying on us and sending information about driving habits. That’s just unbelievable,” Clay said.
The FTC alleged in its complaint that GM “told consumers the driving data they collected from consumers would be used for the consumers’ own assessment of their driving habits. However, Respondents used their tracking technology to sell precise geolocation data and consumer driving behavior data without consumers’ consent.”
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Under the FTC’s final order, General Motors LLC, General Motors Holdings LLC, and OnStar, LLC, “are prohibited from sharing certain consumer data with consumer reporting agencies. They also are required to take steps to provide greater transparency and choice to consumers over the collection, use, and disclosure of their connected vehicle data.”
The order also “imposes a five-year ban on GM disclosing consumers’ geolocation and driver behavior data to consumer reporting agencies. This fencing-in relief is appropriate given GM’s egregious betrayal of consumers’ trust.”
Other restrictions being put on GM for the 20-year life of the order include:
- They must obtain affirmative express consent from consumers prior to collecting, using, or sharing connected vehicle data (including sharing data with consumer reporting agencies), with some exceptions, such as for providing location data to emergency first responders.
- Create a way for all U.S. consumers to request a copy of their data and seek its deletion.
- Give consumers the ability to disable the collection of precise geolocation data from their vehicles if their vehicle has the necessary technology.
- Provide a way for consumers to opt out of the collection of geolocation and driver behavior data, with some limited exceptions.
GM sent us a statement, saying:
“The Federal Trade Commission has formally approved the agreement reached last year with General Motors to address concerns. As vehicle connectivity becomes increasingly integral to the driving experience, GM remains committed to protecting customer privacy, maintaining trust, and ensuring customers have a clear understanding of our practices.”