Investing.com - The Federal Trade Commission (FTC) has initiated enforcement action against General Motors Company (NYSE:GM) and its subsidiary OnStar, for allegedly collecting and selling geolocation and driving behavior data without proper consumer consent.
The proposed order, which is the FTC's first action concerning connected vehicle data, would impose a five-year ban on GM and OnStar from disclosing such data to consumer reporting agencies.
According to the FTC, GM engaged in deceptive practices by not clearly informing consumers about the collection and sale of their precise geolocation and driving behavior information.
The data, which was sometimes recorded every three seconds, has reportedly been used by consumer reporting agencies to impact credit reports and insurance rates.
The proposed order would require GM and OnStar to obtain affirmative express consent from consumers before collecting connected vehicle data, with certain exceptions.
It also mandates that GM and OnStar create mechanisms for consumers to access and delete their data, limit data collection from their vehicles, and opt out of the collection of geolocation and driver behavior data, with some limited exceptions.
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