The Federal Trade Commission has taken action against General Motors and OnStar for allegedly sharing details about drivers to third parties without their consent. The agency launched an investigation into the automotive company after The New York Times found that GM had collected data about customers' vehicle use and sold it to third-party platforms used by insurance companies.

In its continued concentration on the collection and use of consumers’ precise geolocation, on January 16, 2024, the Federal Trade Commission

General Motors reached an agreement to settle allegations that the automaker shared drivers’ locations and behavior data without their consent, the Federal Trade Commission said.

The Federal Trade Commission (FTC) has announced action against General Motors (GM) and its subsidiary, OnStar, for unlawful collection and sale of drivers' precise geolocation and driving behavior data without first obtaining their consent.

The Federal Trade Commission has taken action against General Motors and OnStar for selling location and driving data from

GM touts OnStar as a service that will help consumers during an emergency and provide hands-free voice assistance and real-time traffic and navigation. The FTC says that over time, the company has increased the amount of data it collects through OnStar to include precise geolocation data- which is collected every three seconds for some users.

GM sold precise driver data collected through OnStar and a discontinued feature called Smart Driver. The information could have hiked insurance rates.

The US Federal Trade Commission has reached a settlement with General Motors Co. over claims the automaker deceived drivers by collecting their personal data and sharing it with third parties.

“GM monitored and sold people’s precise geolocation data and driver behavior information, sometimes as often as every three seconds,” FTC Chair Lina Khan said in a statement. “With this action, the FTC is safeguarding Americans’ privacy and protecting people from unchecked surveillance.”

U.S. regulators took aim at General Motors and its OnStar unit late Thursday, saying that they had taken their first-ever action related to connected-vehicle data.

The U.S. carmaker had been harvesting drivers' data that was of particular value for insurers keen on better assessing the risk posed by policyholders.

General Motors will be banned for five years from disclosing data that it collects from drivers to consumer reporting agencies as part of a settlement with the government to resolve claims that the automaker shared such data without consumers’ permission.