Federal Trade Commission bans General Motors from selling customer data to brokers
The Federal Trade Commission issued a five-year ban on General Motors selling customer data to third parties and consumer reporting agencies.
GM faced unprecedented penalty earlier this year
The Federal Trade Commission imposed a five-year prohibition on the automaker sharing customer information with external brokers. This action follows years of collecting driving habits such as speeding frequency and night-time travel patterns.
Drivers unknowingly consented to data sharing
Many vehicle owners signed up for an OnStar connected services plan without realizing their data would be sold. The enrollment process was confusing enough that drivers often had no idea their information was being shared with companies like LexisNexis and Verisk.
Insurance rates rose for some customers
A 2024 investigative report by The New York Times found that some drivers saw their insurance premiums increase due to this data collection. The automaker shared the gathered information with two major data brokers that work within the insurance industry.
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