"GM monitored and sold people's precise geolocation data and driver behavior information, sometimes as often as every three seconds," FTC Chair Lina M. Khan stated. "With this action, the FTC is safeguarding Americans' privacy and protecting people from unchecked surveillance."
The FTC's proposed settlement will ban both GM and OnStar from disclosing consumers' geolocation and driver behavior data to consumer reporting agencies for five years.
Customers were encouraged to join the OnStar Smart Driver program without realizing the extent of data collection, which included behaviors like hard braking and speeding.
After The New York Times report surfaced, GM announced it had stopped sharing sensitive information with data brokers LexisNexis and Verisk.
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