GM Faces FTC Ban on Selling Customer Driving Data for Five Years

General Motors (GM) and its OnStar division have been barred from selling customer-driving data for the next five years. This decision follows an investigation that revealed GM was sharing sensitive customer information without proper consent.  

This became public after it was discovered that GM had been gathering detailed information about how customers drove their vehicles. This included how fast they accelerated, how hard they braked, and how far they travelled. Rather than keeping this data private, GM sold it to third parties, including insurance companies and data brokers.

Many customers did not know about this practice and complained when their insurance premiums suddenly increased. According to reports, one customer complained that they had enrolled in OnStar to enjoy its tracking capabilities, not to have their data sold to third parties.

The Federal Trade Commission (FTC) accused GM of misleading customers during the enrollment process for OnStar’s connected vehicle services and Smart Driver program. According to the FTC, GM failed to inform users that their driving data would be col

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