# FTC Finalizes GM Data-Sharing Settlement
In a landmark decision for consumer privacy in the automotive industry, the Federal Trade Commission (FTC) has finalized a settlement with General Motors (GM) and its subsidiary OnStar, addressing allegations of collecting and selling drivers' precise geolocation and driving behavior data without proper consent.[1][2][6] Announced on January 14, 2026, the order imposes strict restrictions on data practices, marking the FTC's first major action on connected vehicle data and signaling heightened scrutiny on automakers' handling of sensitive information from millions of U.S. vehicles.[2][4]
Details of the FTC's Allegations Against GM and OnStar
The FTC's complaint, initially announced in January 2025, accused GM and OnStar of using a misleading enrollment process for their OnStar connected vehicle service and OnStar Smart Driver feature.[2] Consumers were not adequately informed that the service collected detailed geolocation data—tracking precise vehicle locations—and driving behavior data, such as speed and braking patterns, which was then sold to third parties, including consumer reporting agencies (CRAs), without affirmative consent.[1][2][3] This affected millions of vehicles, raising concerns over privacy breaches and potential misuse of data for credit scoring or insurance purposes.[1][6]
The settlement resolves these claims without admitting wrongdoing, but it underscores the FTC's view of GM's actions as an "egregious betrayal of consumers’ trust."[2] The Commission's 2-0 vote to approve the final order followed public comments, emphasizing the need for transparency in how automakers monetize vehicle telemetry.[2][5]
Key Terms of the 20-Year Settlement Order
The finalized order introduces robust safeguards lasting 20 years, with some provisions extending indefinitely.[2][3] Notably:
- A five-year ban on sharing geolocation and driver behavior data with CRAs, preventing its use in credit or insurance decisions.[1][2][3]
- Requirement for affirmative express consent before collecting, using, or sharing connected vehicle data, with exceptions for emergencies like sharing location with first responders.[2][3]
- Consumers must be able to request a copy of their data, delete it, opt out of collection (with limited exceptions), and disable precise geolocation if the vehicle technology allows.[2]
GM is also mandated to enhance transparency through clearer disclosures about data practices, giving U.S. drivers greater control over their information.[1][2] This "fencing-in relief" aims to prevent future violations and sets a precedent for the industry.[2]
Broader Implications for Automotive Data Privacy and Industry Trends
This settlement arrives amid rising concerns over vehicle data security, coinciding with the Department of Commerce's recent rule banning vehicle software and hardware from China and Russia due to national security risks tied to data collection.[1] For GM—a major player with a $76.14 billion market cap operating in North America, International, and Financial segments—the order could influence investor sentiment, especially amid notes on its debt issuance and insider selling.[3]
The FTC's action fits a pattern of automotive enforcement, including prior cases against Vroom for shipment issues and Leader Automotive for deceptive sales practices.[4] It highlights growing regulatory focus on data brokers and connected cars, potentially pressuring competitors to review their practices and bolstering consumer rights in an era of increasingly smart vehicles.[6]
Frequently Asked Questions
What data did GM and OnStar allegedly collect and sell without consent?
GM and OnStar collected **precise geolocation data** (exact vehicle locations) and **driving behavior data** (e.g., speed, braking) from millions of vehicles via the OnStar Smart Driver feature, then sold it to third parties like consumer reporting agencies without clear disclosure or affirmative consent.[1][2][6]
How long do the restrictions in the FTC settlement last?
The order spans **20 years**, including a **five-year ban** on sharing geolocation and driver data with consumer reporting agencies, plus ongoing requirements for consent, transparency, data access, deletion, opt-outs, and geolocation disabling.[2][3]
Does the settlement require GM to pay any fines or refunds?
No monetary penalties or refunds are mentioned in the finalized order; it focuses on injunctive relief like data-sharing bans and transparency mandates rather than financial penalties.[2][5]
Can consumers still use OnStar services under the new rules?
Yes, but GM must now obtain **explicit consent** for data collection and sharing, provide opt-out options, and allow data deletion or disabling of geolocation where possible, with exceptions for emergencies.[2][3]
What prompted the FTC's initial complaint against GM?
The complaint stemmed from a **misleading enrollment process** for OnStar services that failed to disclose data collection and sales practices, first announced in January 2025.[2]
How does this FTC action impact the broader auto industry?
It sets a precedent for **connected vehicle data** privacy, increasing scrutiny on automakers amid national security concerns over foreign tech and pushing for better consumer controls on sensitive driving data.[1][4][6]
🔄 Updated: 1/15/2026, 12:40:24 AM
**FTC Finalizes GM Data-Sharing Settlement, Reshaping Auto Industry Data Practices**
The FTC's finalized order imposes a **five-year ban** on General Motors and OnStar sharing precise geolocation and driving behavior data with consumer reporting agencies like LexisNexis and Verisk, following allegations of misleading enrollment in the Smart Driver program that affected millions of vehicles[1][3][2]. This restriction, paired with mandatory explicit consumer consent for all connected vehicle data collection over 20 years, levels the competitive field by curbing GM's prior data monetization edge, potentially boosting rivals like Ford and Tesla who emphasize transparent telematics[3][1]. "This fencing-in relief is appropriate given GM’s egregious betrayal of consumers’ trus
🔄 Updated: 1/15/2026, 12:50:24 AM
**FTC Finalizes GM Data-Sharing Settlement: Technical Breakdown**
The FTC's finalized order imposes a **5-year ban** on GM and OnStar sharing **precise geolocation data** (tied to vehicle VIN) and **driver behavior metrics**—such as hard braking, late-night driving, and speeding—with consumer reporting agencies like LexisNexis and Verisk, stemming from the now-defunct Smart Driver program's opaque enrollment via connected car apps.[1][2][4][6] Over the full **20-year term**, GM must secure **affirmative express consent** at dealership point-of-sale for any connected vehicle data collection/use/sharing (except emergencies), enable nationwide data access/deletion/opt-out vi
🔄 Updated: 1/15/2026, 1:00:25 AM
**LIVE NEWS UPDATE: GM Stock Dips Modestly on FTC Data-Sharing Settlement**
General Motors shares (GM) fell 1.2% in after-hours trading Wednesday, closing at $48.72 after the FTC finalized its order banning GM and OnStar from sharing geolocation and driving data with consumer reporting agencies for five years[1][2][3]. Market analysts noted the muted reaction given GM's $76.14 billion market cap and prior policy overhauls since 2024, with no immediate spike in trading volume reported[3]. GM stated, “As vehicle connectivity becomes increasingly integral... GM remains committed to protecting customer privacy,” signaling confidence amid the 20-year transparency mandates[1].
🔄 Updated: 1/15/2026, 1:10:25 AM
The Federal Trade Commission finalized a settlement with General Motors on January 15, 2026, imposing a **five-year ban on sharing geolocation and driving behavior data with consumer reporting agencies** and a 20-year order requiring explicit consumer consent before collecting connected vehicle data.[2][3] The order addresses allegations that GM and OnStar collected and sold precise location data from millions of vehicles without adequate disclosure, data that insurance companies used to set rates and deny coverage.[3] GM must now establish mechanisms for all U.S. consumers to request data deletion, disable geolocation tracking, and opt out of data collection, with limited exceptions for emergency services.[3]
🔄 Updated: 1/15/2026, 1:20:25 AM
**NEWS UPDATE: Mixed Consumer Reactions to FTC's GM Data-Sharing Settlement**
Consumer advocates hailed the FTC's finalized order as a victory, with the agency citing GM's "egregious betrayal of consumers’ trust" after selling geolocation data from **millions of vehicles** without consent, as detailed in the official FTC complaint[3]. GM previously discontinued its Smart Driver program in April 2024 "citing customer feedback" following a New York Times exposé that sparked outrage over data sales to brokers like LexisNexis and Verisk, which impacted insurance rates[2]. While no new public polls emerged post-finalization, the 2-0 Commission vote underscores strong regulatory backing amid calls for broader industry transparency[3].
🔄 Updated: 1/15/2026, 1:30:25 AM
**BREAKING: FTC Finalizes Landmark 20-Year Privacy Order Against GM and OnStar.** The Federal Trade Commission approved the order on January 14, 2026, imposing a **five-year ban** on sharing consumers' precise geolocation and driving behavior data with consumer reporting agencies, stemming from allegations that GM collected and sold data from millions of vehicles via the OnStar Smart Driver program without clear consent[2][4][6]. For the full 20-year term, GM must secure **explicit consumer consent** before any connected vehicle data collection or sharing (except emergencies), enable data deletion requests, and allow disabling of geolocation tracking where feasible; GM states it has already implemented these measures post-discontinuing Smart Driver in April
🔄 Updated: 1/15/2026, 1:40:25 AM
**FTC Finalizes 20-Year Order Against GM and OnStar for Unauthorized Geolocation Data Sales.** The settlement imposes a **five-year ban** on sharing precise geolocation and driving behavior data—collected via the now-discontinued Smart Driver program from millions of vehicles—with consumer reporting agencies like LexisNexis and Verisk, while mandating **affirmative express consent** for all connected vehicle data use over the order's full term, plus options for U.S. consumers to access, delete data, and disable tracking where feasible[1][2][4]. Technically, this "fencing-in relief" addresses GM's misleading enrollment that obscured data sales to insurers, potentially hiking rates, signaling FTC's sharpened focus o
🔄 Updated: 1/15/2026, 1:50:25 AM
**NEWS UPDATE: FTC Finalizes GM Data-Sharing Settlement**
The FTC's finalized 20-year order imposes a **five-year ban** on General Motors and OnStar sharing consumers' precise geolocation and driving behavior data with consumer reporting agencies like LexisNexis and Verisk, reshaping the **competitive landscape** for automaker data monetization by curtailing sales to data brokers and insurers[1][3][5]. This **first-of-its-kind FTC action on connected vehicle data** from millions of GM vehicles mandates explicit consent at dealerships and opt-out options, potentially pressuring rivals to enhance transparency or risk similar scrutiny amid rising regulatory focus on geolocation limits[2][3][6]. GM already discontinued its Smart Driver progra
🔄 Updated: 1/15/2026, 2:00:25 AM
The Federal Trade Commission finalized a settlement Wednesday with General Motors and OnStar, imposing a **five-year ban on disclosing geolocation and driving behavior data to consumer reporting agencies** and a comprehensive **20-year order requiring explicit consumer consent** before any connected vehicle data collection or sharing.[1][2] Under the order, GM must create mechanisms for U.S. consumers to request data copies, seek deletion, and opt out of geolocation tracking, with limited exceptions such as emergency first responder access.[1] The settlement addresses allegations that GM collected and sold precise location data from millions of vehicles without adequate consumer notification, with the FTC voting 2-0 to approve the finalized order and complaint
🔄 Updated: 1/15/2026, 2:10:29 AM
**BREAKING: FTC Finalizes GM Data-Sharing Settlement** – Privacy experts hail the 20-year order's **five-year ban** on GM sharing geolocation and driver behavior data with consumer reporting agencies as "fencing-in relief... appropriate given GM’s **egregious betrayal of consumers’ trust**," per the FTC statement[1]. Industry analysts note it signals heightened FTC scrutiny on **geolocation data** limits, with TechCrunch reporting GM's prior sales to brokers like LexisNexis and Verisk impacted insurance rates – as consumer Temeika Clay saw her premiums **skyrocket 80%** after **603 data entries** from her Chevrolet Camaro were shared without consent[2][4]. Auto compliance specialists a
🔄 Updated: 1/15/2026, 2:20:24 AM
**NEWS UPDATE: Consumer Backlash Mounts Over FTC's GM Data-Sharing Settlement**
Consumers expressed widespread frustration online after the FTC finalized its order against GM and OnStar on January 14, 2026, with social media posts decrying the lack of monetary penalties despite data from **millions of vehicles** being sold without consent to brokers like LexisNexis and Verisk[1][2]. One prominent X user quoted in TechCrunch coverage stated, *"GM tracked our every move and sold it to insurers—where's the fine for betraying trust?"* highlighting anger over impacts on insurance rates[1]. Advocacy groups praised the **20-year** consent mandates but warned they're "too little, too late,
🔄 Updated: 1/15/2026, 2:30:30 AM
The Federal Trade Commission finalized a **20-year privacy order** against General Motors and OnStar on Wednesday, imposing a five-year ban on sharing geolocation and driving behavior data with consumer reporting agencies.[1][3] This settlement marks the FTC's first enforcement action involving connected vehicle data, potentially signaling heightened regulatory scrutiny that could reshape how automakers monetize telematics services and compete in the data-driven automotive sector.[1][3] GM must now obtain explicit consumer consent before any data collection and provide users the ability to disable precise geolocation tracking, requirements that could give competitors emphasizing privacy-first designs a competitive advantage in markets increasingly sensitive to data practices.[3]
🔄 Updated: 1/15/2026, 2:40:28 AM
**NEWS UPDATE: FTC Finalizes GM Data-Sharing Settlement**
The FTC's 20-year order banning GM from sharing geolocation and driving data without explicit consent from millions of connected vehicles sets a precedent for **global automakers**, signaling intensified U.S. scrutiny on telematics privacy that could influence data practices worldwide, particularly as GM operates internationally across North America, Europe, and Asia.[1][2][3][5] No direct international responses have emerged yet, but analysts note the ruling "hints at US FTC focus on geolocation data" with potential ripple effects for foreign regulators like the EU's GDPR enforcers.[5] GM, with its $76.14 billion market cap and global brands, must now implement opt-out tools universall
🔄 Updated: 1/15/2026, 2:50:28 AM
**FTC Finalizes GM Data-Sharing Settlement: Technical Breakdown**
The FTC's 20-year order imposes a **five-year ban** on GM and OnStar sharing precise **geolocation** and **driving behavior data**—collected via the now-discontinued Smart Driver program from millions of vehicles—with consumer reporting agencies like LexisNexis and Verisk, mandating **affirmative express consent** for all connected vehicle data use, plus opt-out, deletion requests, and disablement of precise location tracking where feasible[1][2][4]. Technically, this "fencing-in relief" addresses GM's misleading enrollment that obscured data sales impacting insurance rates, requiring VIN-linked consent at dealerships and transparency over data flow