The FTC’s data-sharing order against GM is finally settled

The Federal Trade Commission (FTC) has finalized an order prohibiting General Motors (GM) and its OnStar telematics service from sharing certain consumer data with consumer reporting agencies. This settlement, reached a year prior but only recently finalized, requires GM to be more transparent about its data collection practices and to obtain explicit consumer consent before collecting, using, or sharing connected vehicle data. The order follows revelations from nearly two years ago that GM and OnStar collected and sold drivers’ precise geolocation and driving behavior data—gathered through GM’s Smart Driver program—to third parties including data brokers like LexisNexis and Verisk, which then sold the information to insurance providers potentially affecting customer rates. Under the finalized order, GM must secure explicit consent from consumers at the point of vehicle purchase, linking the OnStar system to the vehicle’s VIN and asking owners to agree to data collection. While the order bans sharing location data with consumer reporting agencies, exceptions allow GM to share data with emergency responders and