General Motors Ordered to Stop Selling Car Data



General Motors Ordered to Stop Selling Car Data

Many modern cars have the ability to track usage data, and General Motors was recently caught selling that data to oher companies. Now the US has ordered GM to stop that.



The Federal Trade Commission (FTC) of the US has barred General Motors (GM) from selling sensitive driver data to consumer reporting agencies for the next five years. The decision comes after a lengthy investigation sparked by a New York Times report revealing that the automaker was secretly collecting and selling detailed information about drivers’ behavior, including location data and instances of speeding, hard braking, and late-night driving, to data brokers. This data was subsequently used to generate risk profiles for insurance companies, leading to increased insurance premiums for some drivers.


The FTC’s research found that GM collected this data from millions of vehicles equipped with OnStar Connected Services and the Smart Driver feature “without adequately notifying consumers and obtaining their affirmative consent.” The FTC also condemned GM’s lack of transparency, stating that the automaker “failed to clearly disclose to consumers the types of information it collected,” including that this sensitive data would be sold to consumer reporting agencies. These agencies then used the data to compile reports that impacted insurance rates and coverage decisions.

It should be noted that the company can still share anonymized driving data with third parties, such as road safety researchers, but at least they won’t give data brokers driving data that can be tied back to you. And even if you don’t want this anonymized data to be shared either, GM is also required to make it easier for drivers to disable location tracking and access and delete the data collected about their driving. So your car will probably still try to track you, but it will be easier to keep it in check. This will presumably come as an update to your car’s infotainment system, although we’re not exactly sure when that will roll out.


Source: The New York Times



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