TL;DR
The Federal Trade Commission finalized a 20-year consent order that bars General Motors and OnStar from sharing drivers' precise location and driving behavior with consumer reporting agencies for five years. The action follows reporting that GM’s Smart Driver telematics collected detailed driver data and routed it to data brokers and insurers; the order also requires clearer consent, data access and deletion options for drivers.
What happened
On January 14 the Federal Trade Commission approved a consent order resolving its complaint that General Motors turned connected vehicles into surveillance sources by collecting and selling drivers’ telematics without clear notice. The order prevents GM and its OnStar unit from providing precise geolocation and driving-behavior data to consumer reporting agencies for five years as part of a broader 20-year settlement. The FTC’s earlier complaint, first disclosed in January 2025, followed reporting that a GM feature called Smart Driver gathered detailed data — including exact location, hard braking, acceleration, speed and seatbelt use — that was passed to data brokers such as LexisNexis and Verisk and eventually reached insurers. GM discontinued Smart Driver and unenrolled users in April 2024 and said it ended the third-party telematics arrangements. Under the new terms, GM must obtain explicit consent before collecting or sharing covered data and give consumers ways to view, delete or stop precise location tracking, while still allowing certain emergency and internal uses.
Why it matters
- Connected-vehicle features can generate detailed personal data that may be sold beyond the manufacturer, raising privacy and consumer-protection concerns.
- Insurers and other downstream buyers could access driving data that might be used to affect customers’ premiums or underwriting decisions.
- The FTC action signals regulators may impose stronger limits and consent requirements on automakers seeking to monetize telematics.
- Consumers will gain new controls and transparency around what connected car systems collect and share, including deletion and opt-out mechanisms.
Key facts
- The FTC finalized a consent order on January 14; the order spans 20 years with a five-year ban on sharing precise location and driving data with consumer reporting agencies.
- The agency’s complaint traces GM’s data collection to a feature called Smart Driver, promoted as a safety add-on inside GM’s connected car apps.
- Reportedly collected data types included precise geolocation, hard braking, acceleration, speed and seatbelt use.
- Data from Smart Driver was alleged to have been sent to brokers such as LexisNexis and Verisk, which sold it to insurers.
- The FTC’s complaint was first made public in January 2025; it accused GM of steering drivers toward OnStar and downplaying the extent and downstream uses of data collection.
- GM shut down Smart Driver and unenrolled users in April 2024 and said it severed the third-party telematics deals that fed brokers.
- Under the order GM must secure explicit consent before collecting or sharing covered connected-car data and must offer consumers ways to obtain, delete or stop collection of precise geolocation data.
- The FTC permits GM to share location data with emergency responders and to use data internally for research and development; GM confirmed it sometimes shares anonymized data for projects like traffic analysis and road safety.
- GM said the settlement addresses privacy concerns about the discontinued Smart Driver program and described the order as largely reflecting changes it had already made.
What to watch next
- Whether regulators pursue similar actions against other automakers that collect and monetize telematics.
- How GM implements the consent, data-access and deletion mechanisms required by the order — specific UX and technical details are not outlined in the source.
- Whether insurers previously receiving telematics through brokers used that data to change individual premiums — not confirmed in the source.
Quick glossary
- Federal Trade Commission (FTC): U.S. government agency that enforces consumer-protection and competition laws, including actions related to privacy and data practices.
- Telematics: Technology that collects and transmits data from vehicles about location, speed, acceleration and other operational or behavioral metrics.
- Consumer reporting agency: An entity that collects and assembles consumer information for use in credit reports, insurance underwriting, or other evaluations of consumers.
- Consent order: A legally binding agreement between a regulator and a company that resolves an enforcement action and sets compliance requirements without a court judgment.
Reader FAQ
What did the FTC require GM to stop doing?
The order bars GM and OnStar from sharing drivers’ precise location and driving-behavior data with consumer reporting agencies for five years and imposes consent and data-access requirements.
What was Smart Driver?
Smart Driver was a GM feature described as a safety add-on that collected telematics such as location, braking and speed; it was discontinued in April 2024.
Will GM still share any vehicle data?
The order allows sharing with emergency responders and internal research uses; GM also said it sometimes shares anonymized data for projects like traffic analysis and road safety.
Did insurers raise customers’ premiums using Smart Driver data?
Not confirmed in the source.
SECURITY US regulator tells GM to hit the brakes on customer tracking Smart Driver pitched as safety app, but feds claim it's a data-harvesting scheme that jacked up premiums Carly…
Sources
- US regulator tells GM to hit the brakes on customer tracking
- FTC bans GM from selling driver data amid privacy violations
- GM order hints at US FTC focus on geolocation data …
- FTC Takes Action Against General Motors for Sharing …
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