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General Motors and its subsidiary OnStar agreed not to disclose sensitive vehicle geolocation and driver behaviour data to consumer reporting agencies for five years.
General Motors and its subsidiary OnStar agreed not to disclose sensitive vehicle geolocation and driver behaviour data to consumer reporting agencies for five years.
Image: Reuters

US carmaker General Motors and its subsidiary, OnStar, agreed not to disclose sensitive vehicle geolocation and driver behaviour data to consumer reporting agencies for five years, the US federal trade commission (FTC) said on Thursday.

The agency alleged the largest US carmaker collected, used and sold drivers’ precise geolocation data and driving behaviour information from millions of vehicles, which could be used to set insurance rates, without notifying consumers and obtaining consent.

The vehicles automatically collected data on hard braking, late night driving and speeding and sold the data to consumer reporting agencies without permission from drivers. The agencies used the data to compile reports that insurance companies sometimes used to deny insurance, and in some cases raise rates.

GM said it had ended its Smart Driver programme last year. It had designed the programme to promote safe driving by analysing and giving drivers feedback on their driving habits.

“We’re more committed than ever to making our policies and controls clear and accessible as we continue to evolve the driving experience for our customers,” GM said.

The company must also obtain driver consent to collect data, and allow them to delete or limit data as part of the settlement.

The case is one of several the Democratic-led FTC is releasing ahead of president-elect Donald Trump’s inauguration on Monday.

The FTC’s two Republican commissioners did not vote.

US senator Ron Wyden, a Democrat, praised the settlement to “protect Americans’ privacy against automakers who sold detailed location data to insurance companies”.

Reuters

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