● Covered by 1 source · 1 reportMedium impact1 negative
FTC Penalizes GM for Selling Driver Data; Mozilla Finds Widespread Auto Data Collection
Key points
- FTC banned GM from selling customer data for five years.
- GM collected driving data via OnStar's Smart Driver and sold it to LexisNexis and Verisk.
- Some drivers reported increased insurance rates due to data sharing.
- Mozilla Foundation found all major car companies have poor privacy and security practices.
FTC Action Against General Motors
The Federal Trade Commission (FTC) imposed a five-year ban on General Motors (GM) from selling customer data to consumer reporting agencies and third-party data brokers. This penalty follows GM's practice of collecting various driving data, such as speeding frequency and night driving habits, and then selling it to brokers like LexisNexis and Verisk. These brokers used the data to create risk profiles for insurance companies.
Unaware Consent and Impact on Drivers
Many GM drivers were reportedly unaware their data was being collected and shared. Consent was often obtained through enrollment in OnStar connected services, which activated a feature called Smart Driver. A New York Times investigation revealed that some drivers experienced increased insurance rates as a direct result of this data collection. The FTC settlement requires GM to simplify the process for drivers to disable location tracking and to access or delete their collected data.
Widespread Industry Data Collection
GM's practices are not isolated. Research by the Mozilla Foundation in 2023, which examined the privacy policies of major car companies, concluded that every automaker exhibited "horrible privacy and security." The study noted that customers are often forced to accept multiple, overlapping privacy policies for their vehicle, connected services, smartphone apps, and financial services, all of which include provisions for data collection.
Complexity for Consumers
Jen Caltrider, a co-author of the Mozilla study, stated that the complexity of these multiple policies makes it overwhelming for consumers to understand what data is being collected and how it is being used. This corroborates findings from other organizations, including a Consumer Reports investigation published last year, which also highlighted extensive data collection by car manufacturers.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
The Federal Trade Commission issued a five-year ban preventing General Motors from selling customer driving data to third-party brokers after GM collected and shared data like speeding habits, leading to increased insurance rates for some drivers. This action highlights a broader industry issue, as a Mozilla Foundation report found all major car companies have poor privacy practices, collecting extensive user data through various services.