The FTC alleged that General Motors and its OnStar subsidiary collected and sold drivers' precise geolocation and driving behavior data (e.g., hard braking, speeding) to consumer reporting agencies without adequately notifying consumers or obtaining their affirmative consent. A proposed consent order bans the companies from disclosing this sensitive data to consumer reporting agencies for five years and requires them to implement clearer consent mechanisms, data access/deletion processes, and opt-out options.
The proposed order prohibits GM and OnStar from misrepresenting their data practices, bans disclosure of covered driver data to consumer reporting agencies for five years, requires affirmative express consent prior to collecting connected vehicle data (with limited exceptions), mandates a process for consumers to access and delete their data, and requires providing consumers the ability to disable precise geolocation collection and opt-out of geolocation/driver behavior data collection.
In-house legal teams should review all vendor agreements (particularly with data brokers or consumer reporting agencies), customer-facing terms of service/privacy policies, and data processing agreements. Focus on clauses governing data sharing, consent mechanisms (especially for sensitive data like precise geolocation and driving behavior), opt-out rights, data retention, and disclosures to third parties. Changes needed include: adding explicit, affirmative consent requirements for collecting and sharing sensitive connected vehicle data; prohibiting disclosure of such data to consumer reporting agencies for five years; implementing clear, accessible opt-out processes; establishing robust data access and deletion procedures; and ensuring enrollment processes are not misleading.
Entity
General Motors LLC, General Motors Holdings LLC, and OnStar LLC
Also known as: General Motors
Industry
AutomotiveOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2025/01/ftc-takes-action-against-general-motors-sharing-drivers-precise-location-driving-behavior-data
242 3052 general motors decisionandorder
https://www.ftc.gov/system/files/ftc_gov/pdf/242_3052_-_general_motors_decisionandorder.pdf
242 3052 general motors complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/242_3052_-_general_motors_complaint.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"General Motors LLC, General Motors Holdings LLC, and OnStar LLC"
"GM failed to clearly disclose that it collected consumers’ precise geolocation and driving behavior data and sold it to third parties, including consumer reporting agencies, without consumers’ consent."
"GM monitored and sold people’s precise geolocation data and driver behavior information, sometimes as often as every three seconds."
"The proposed order would prohibit GM and OnStar from misrepresenting information about how they collect, use, and share consumers’ location and driver behavior data."
"The proposed order would ban GM and OnStar from disclosing consumers’ geolocation and driver behavior data to consumer reporting agencies for five years from the date the order is entered."
"The companies must obtain affirmative express consent from consumers prior to collecting connected vehicle data, with some exceptions such as providing location data to emergency first responders."
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$1.9M
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