WASHINGTON (Reuters) -U.S. automaker General Motors (NYSE:GM) and its subsidiary OnStar agreed not to disclose sensitive vehicle geolocation and driver behavior data to consumer reporting agencies for five years, the U.S. Federal Trade Commission said on Thursday.
The agency alleged the largest U.S. automaker collected, used, and sold drivers' precise geolocation data and driving behavior information from millions of vehicles, which can be used to set insurance rates, without notifying consumers and obtaining consent.
The vehicles automatically collected data on hard braking, late night driving, and speeding and sold that data to consumer reporting agencies without permission from drivers. The agencies used the data to compile reports that insurance companies then sometimes used to deny insurance and in some cases raise rates.
GM said in a statement that it had ended its Smart Driver program last year. It had designed the program hoping to promote safe driving by analyzing and giving drivers feedback on their driving habits.
"We're more committed than ever to making our policies and controls clear and accessible as we continue to evolve the driving experience for our customers," GM said.
The company must also obtain driver consent to collect data, and allow them to delete or limit data as part of the settlement.
The case is one of several the Democratic-led FTC is releasing ahead of President-elect Donald Trump's inauguration on Monday.
The FTC's two Republican commissioners did not vote.
U.S. Senator Ron Wyden, a Democrat, praised the settlement to "protect Americans' privacy against automakers who sold detailed location data to insurance companies."