General Motors Agrees to FTC Settlement Over Driver Data Privacy Issues

General Motors (GM) has reached a settlement with the Federal Trade Commission (FTC) over allegations that the automaker collected and shared driver data without proper disclosure. The FTC claimed that GM’s OnStar system, installed in most vehicles since 2015, gathered detailed driver behavior data—such as speed, braking patterns, and geolocation—and sold it to third parties. Under the agreement, GM will be prohibited from collecting or sharing driver data for the next five years and must secure explicit customer consent for any future data collection.

FTC Chair Lina Khan described the settlement as part of the agency’s broader efforts to protect consumer privacy and curb excessive surveillance. This enforcement follows the discontinuation of GM’s "Smart Driver" program in 2024, which reportedly contributed to the data-sharing practices at the center of the case. GM has stated its intention to improve transparency around data policies and controls moving forward.

The FTC settlement comes on the heels of a similar lawsuit filed by the Texas Attorney General, which alleged that GM pressured customers into enrolling in data-sharing programs like OnStar Smart Driver by tying it to critical safety features. Consumers, however, were not informed that their driving data would be shared with insurers and other entities.

This case underscores the increasing scrutiny automakers face over consumer privacy practices in an era of connected vehicles. As the automotive industry continues its shift toward technology-driven solutions, data privacy is emerging as a top concern for regulators and consumers alike.