FTC Hits GM With 5-Year Ban on Sharing Driver Data With Third Parties

From PC Mag: General Motors and its subsidiary OnStar will be banned from selling customer driving data for the next five years, the Federal Trade Commission announced Thursday.

The agency accuses GM of not clearly disclosing its data-collection policies to users who signed up for its OnStar service and the Smart Driver program.

The Smart Driver program offered "insights on your driving behavior [to] help you recognize driving improvement opportunities" for things like hard braking, late-night driving, and speeding. However, "GM failed to clearly disclose that it collected consumers’ precise geolocation and driving behavior data and sold it to third parties, including consumer reporting agencies, without consumers’ consent," the FTC says.

In some cases, that information was used to increase insurance premiums, as The New York Times first reported last year.

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