FTC bans GM from sharing driving data to settle claims that the automaker sold data without consent

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. GM and subsidiary OnStar, which operates a roadside assistance service, will also be banned from sharing drivers’ precise geolocation and other data, and they will be required to provide more transparency and choice over data linked to how consumers use their vehicles, according to a proposed order released by the Federal Trade Commission on Thursday. GM sold the data, including every instance when a driver was speeding or driving late at night, to consumer reporting agencies, which used it to compile credit reports and, ultimately, provided it to insurance companies that used the data to set their rates, the FTC claims. “GM monitored and sold people’s precise geolocation data and driver behavior information, sometimes as often as every three seconds,” said FTC Chair Lina Khan. The FTC launched its investigation after two U.S. senators called on the agency last July to look into allegations that GM and other automakers were sharing drivers’ data with data brokers.