The Federal Trade Commission (FTC) has finalised a ruling prohibiting General Motors (GM) and its OnStar telematics service from sharing specific consumer data with credit reporting agencies. This order follows a proposed settlement reached a year earlier and mandates GM to enhance transparency with its customers, requiring their explicit consent for certain data collection practices.
The FTC’s action comes in the wake of a New York Times investigation, which revealed that GM and OnStar had been collecting and selling detailed geolocation and driving behaviour data to third parties, including data brokers like LexisNexis and Verisk. This information was gathered through GM’s Smart Driver program, a free feature in their connected car apps designed to track and evaluate driving habits. Such practices raised concerns, especially as this data could influence insurance premiums for users.
In response to customer feedback, GM discontinued the Smart Driver program in April 2024, subsequently ending its partnerships with LexisNexis and Verisk. The FTC’s investigation also indicated that the company employed a misleading enrolment process for users of its connected vehicle services, failing to adequately disclose how their data would be used and sold.
Following the new order, GM must now obtain explicit consumer consent prior to collecting, using, or sharing connected vehicle data, a process initiated at the dealership during the vehicle purchase. Customers are now informed about their rights regarding data collection at the point of sale.
However, there are exceptions; GM is permitted to share certain location data with emergency services and for internal research purposes. The company stated that it sometimes shares anonymised data with various partners, including the University of Michigan for urban planning initiatives.
Additionally, GM is required to implement a system allowing consumers to request access to their data and seek deletion if desired. The company claims it has already taken steps to comply with these requirements.
In 2024, GM began revamping its data collection and privacy policies, consolidating its privacy statements into a more straightforward format and enhancing its privacy programme to facilitate customer access to personal data.
A statement from GM affirmed its commitment to customer privacy, emphasising the importance of maintaining trust as vehicle connectivity becomes more integral to the driving experience. It clarified that the FTC’s ruling specifies that explicit consent is required only for certain types of data collection, correcting a previous misrepresentation.
In summary, the FTC’s order promotes enhanced consumer rights and data transparency in the automotive industry, reflecting a significant shift in how companies like GM engage with customer data privacy.
Fanpage: TechArena.au
Watch more about AI – Artificial Intelligence
