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FTC bans GM from selling customer data to brokers for five years
The FTC has banned GM from selling customer data to third-party data brokers for five years, following revelations that the automaker collected driving data and shared it with insurance-related firms.
This penalty signals that connected-vehicle data collection is under regulatory scrutiny, and engineers must design for data minimization and clear consent rather than burying collection in service agreements. The ruling also highlights the gap between consumer expectations and the opaque data flows in modern cars, which affects anyone building telematics or connected services.
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The FTC issued a five-year ban on GM selling customer data to consumer reporting agencies and third-party data brokers.
GM collected driving data through OnStar's Smart Driver feature, often without drivers' awareness, and shared it with LexisNexis and Verisk.
The proposed DRIVER Act would give owners more control but still allow automakers to sell data, drawing criticism from privacy advocates.
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