The FTC prohibits General Motors from selling driving data without authorization, adding to the case for CarPlay 2.

The Federal Trade Commission took action against General Motors and OnStar for selling data on location and driving behavior from millions of GM car owners, allegedly without informed consent. These data were collected with a maximum frequency of one point every three seconds.

Both companies are banned from selling location and driving behavior data for five years, and they must ensure disclosure of any future exchange plans and obtain appropriate consent for that purpose.

GM Sold Data on Location and Driving Behavior

General Motors and OnStar collected both location data and driving data from customers who had chosen the OnStar vehicle connectivity service and the OnStar Smart Driver feature.

Data on hard braking, high speeds, and even nighttime driving would be sold to consumer reporting agencies that use it to create profiles allowing insurance companies to increase their rates or even refuse coverage.

What was debated was whether car buyers understood that this was part of the contract. GM and OnStar claim yes, while the CFTC says no.

The Federal Trade Commission is suing General Motors (GM) and OnStar for allegedly collecting, using, and selling precise location data and driver behavior information from millions of vehicles—data that can be used to set insurance rates—without adequately informing consumers and obtaining their explicit consent [...]

The United States Federal Trade Commission accused the Michigan-based GM of using a deceptive opt-out process to encourage consumers to sign up for its OnStar vehicle connectivity service and the OnStar Smart Driver feature. GM did not clearly disclose that it collected precise geographic location and driving behavior data from consumers and sold it to third parties.

Five-Year Ban

To resolve this matter, the CFT proposes a five-year ban on selling data, followed by steps to ensure that any future data sales are fully disclosed to consumers and only proceed with their explicit consent.

Under an order proposed to settle the Federal Trade Commission's antitrust charges, General Motors LLC, General Motors Holdings LLC, and OnStar LLC, which are owned by General Motors Company, will be banned for five years from disclosing sensitive geographic data and consumer driving behavior to consumer reporting agencies. They must also take other measures to offer greater transparency and choice to consumers regarding the collection, use, and disclosure of their connected vehicle data.

By accepting this proposal, GM and OnStar can resolve what concerns them without having to pay more.

Helping Make the Case for CarPlay 2

CarPlay 2 would have allowed Apple to support most of a vehicle's data systems, ranging from entertainment systems to driving indicators like speedometers. However, two deadlines passed without any single automaker launching it.

One reason why car brands are reportedly resistant to ceding this level of control is that they want to collect data from their own systems. With CarPlay 2, they would not have access to as much data and it would be protected by Apple's strict privacy standards.

This behavior reinforces the argument for consumers to buy vehicles from companies offering the new CarPlay standard.

Photo: General Motors