The Federal Trade Commission recently imposed a five-year ban on General Motors, prohibiting the automaker from sharing customer driving data with third-party brokers and consumer reporting agencies. The investigation revealed that GM collected information on driving habits, such as speeding and nighttime usage, through its OnStar Smart Driver feature, often without explicit user awareness.
Data from GM was shared with brokers LexisNexis and Verisk, which provided risk profiles to insurance companies. Reports indicate that some drivers experienced increased insurance premiums due to this practice. Under the settlement, GM is now required to simplify the process for drivers to disable location tracking and to manage or delete their personal data.
A 2023 study by the Mozilla Foundation concluded that major automakers maintain poor privacy and security standards. Researchers found that customers are frequently required to accept multiple overlapping data collection policies across vehicle systems, smartphone apps, and financial services, making it difficult for users to track how their information is being handled.
Legislative efforts to address these concerns include the DRIVER Act, introduced by House Republicans, which aims to grant vehicle owners ownership of generated data. However, critics argue the bill remains insufficient as it would still permit automakers to collect and sell data to third parties, placing the burden of privacy management on the consumer.
The Trump administration has proposed the Freedom Car concept, which seeks to prohibit government mandates for automated driving systems or wireless data transmission capabilities. Despite these policy discussions, automakers continue to prioritize data collection as a revenue stream, leaving consumers with limited options for vehicles that operate without constant digital tracking.
