FTC Imposes Five-Year Ban on GM, OnStar for Data Privacy Violations

The Federal Trade Commission (FTC) has launched an enforcement action against General Motors (GM) and its subsidiary OnStar for allegedly collecting and selling sensitive geolocation and driving behavior data from millions of drivers without proper consent. This marks the FTC's first action targeting privacy violations in connected vehicle data, claiming that GM deceived consumers during the enrollment process for its services. Under a proposed settlement, GM and OnStar will be banned from disclosing this data to consumer reporting agencies for five years, and they must implement measures to enhance consumer transparency and control over their data. FTC Chair Lina M. Khan emphasized the importance of protecting consumer privacy and preventing unchecked surveillance. The FTC's actions follow claims that the data was improperly used by insurers to set premiums based on the information. Multiple class action lawsuits have also emerged, alleging similar privacy violations by GM and OnStar, prompting a request to centralize these claims in federal court.