The US Federal Trade Commission has finalized a settlement with General Motors, banning the automaker from sharing certain consumer vehicle data with third parties for five years. The agreement addresses GM's past practices through its OnStar Smart Driver program, which collected and sold drivers' geolocation and behavior data to brokers that influenced insurance rates. GM must now obtain explicit in-person permission from customers before collecting or sharing such data.
In a move to protect consumer privacy, the Federal Trade Commission (FTC) on January 15, 2026, approved a settlement with General Motors (GM) stemming from allegations of improper data handling. The case originated from a New York Times report two years prior, which exposed how GM's OnStar Smart Driver program gathered detailed geolocation and driving behavior information from vehicles. This data was sold to third-party brokers, including LexisNexis and Verisk, who then provided it to insurance companies, resulting in higher premiums for some drivers.
One affected Chevy Bolt owner described the experience as a "betrayal," noting his insurance rates increased by 21 percent after the data sharing. "They’re taking information that I didn’t realize was going to be shared and screwing with our insurance," the driver said.
Under the finalized order, GM is prohibited from sharing user data with consumer reporting agencies for five years. The company must request permission in person at dealerships when customers purchase vehicles, ensuring informed consent for any data collection, use, or sharing with third parties. Much of the program's impact has already been curtailed; GM discontinued Smart Driver across all brands in April 2024, unenrolled participants, and terminated ties with the brokers.
The settlement follows additional legal actions, including lawsuits from states like Texas and Nebraska. Texas Attorney General Ken Paxton stated, "Our investigation revealed that General Motors has engaged in egregious business practices that violated Texans’ privacy and broke the law. We will hold them accountable."
GM responded affirmatively, saying, "The Federal Trade Commission has formally approved the agreement reached last year with General Motors to address concerns. As vehicle connectivity becomes increasingly integral to the driving experience, GM remains committed to protecting customer privacy, maintaining trust, and ensuring customers have a clear understanding of our practices." This resolution underscores growing regulatory scrutiny on automakers' data practices amid rising vehicle connectivity.
