The Federal Trade Commission has reached a settlement that will end the practice
The Federal Trade Commission (FTC) is taking action against General Motors (GM) and its subsidiary OnStar for allegedly collecting and sharing drivers' precise geolocation and driving behavior data without properly informing them or obtaining their consent.
This data, which can influence insurance rates, was reportedly sold to third parties, including consumer reporting agencies.
Texas and two consumer law firms sued Allstate Insurance earlier for using its app to track driver behavior without consent.
Under a proposed settlement, GM and OnStar will be prohibited for five years from sharing this sensitive data with consumer reporting agencies. Additionally, they must take steps to improve transparency and give consumers more control over their data, such as:
- Consent Requirements: Consumers must give explicit consent before their data is collected, except in certain emergency situations.
- Access and Deletion: Consumers can request access to their collected data and ask for it to be deleted.
- Data Collection Limits: Consumers must have the option to disable the collection of precise geolocation and driving behavior data.
The FTC alleged that GM's enrollment process for OnStar and its Smart Driver feature was misleading, failing to clearly disclose the collection and use of data. Some consumers were unaware their driving habits were being used to set insurance rates. Complaints revealed frustration over unexpected impacts on their insurance costs.
Violating the final order could result in significant penalties.
Photo Credit: Consumer Affairs News Department Images
Posted: 2025-01-17 01:26:35
