FTC Bars GM From Selling Driver Data for 5 Years After LexisNexis Sharing
Updated
Updated · BBC.com · May 13
FTC Bars GM From Selling Driver Data for 5 Years After LexisNexis Sharing
12 articles · Updated · BBC.com · May 13
General Motors is barred from selling vehicle and location data for five years after the FTC said it shared driver information with data broker LexisNexis without consent.
130 pages of trip records tied to one driver helped expose how detailed the tracking can be; the driver said his insurance premium rose 21% after six months of logged journeys.
The order does not stop the wider trade in car data: LexisNexis and other brokers can still obtain driving information from other automakers, apps and insurance telematics programs.
50% of cars on the road were internet-connected in 2021, and McKinsey expects 95% by 2030, expanding the pool of data on location, behavior and even biometric signals.
New US impaired-driving technology rules could deepen those privacy concerns by adding infrared cameras and behavioral monitoring, while federal law still lacks broad limits on how automakers use the resulting data.
Will mandatory anti-drunk driving tech make roads safer or just turn your vehicle into a surveillance device?
Your car's data is a goldmine for automakers. Why might it only cost you more in insurance premiums?
GM and OnStar Fined $12.75 Million: Regulatory Crackdown on Unauthorized Driver Data Sales and Privacy Violations
Overview
General Motors (GM) and its subsidiary OnStar recently faced major regulatory actions over their collection and sharing of customer driving data. After California regulators focused on data brokerage and transparency, GM agreed to a $12.75 million settlement under the California Consumer Privacy Act, specifically addressing issues with its discontinued 'Smart Driver' product. This settlement signals stricter enforcement of privacy rules. At the same time, the U.S. Federal Trade Commission also took action against GM, highlighting a broader trend of increased scrutiny on how automakers handle and monetize customer data, pushing the industry toward greater accountability and transparency.