The IT Nerd

Back in 2023, I wrote about modern cars being rolling privacy nightmares. I’d like to highlight one thing that I said when it was discovered that car companies were collecting all sorts of data and selling it:

The car companies then sell this data, as it’s a revenue source for them. And opting out of this data collection isn’t an option for the most part. Consent is an illusion as simply stepping into a car with this sort of tech qualifies as consent. And finally, all car companies do this.

Well, the Federal Trade Commission has decided to do something about this. And they’ve targeted GM and OnStar to curtail this practise:

Under a proposed order settling the FTC’s allegations, 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 consumers’ sensitive geolocation and driver behavior data to consumer reporting agencies. They also must take other steps to provide greater transparency and choice to consumers over the collection, use, and disclosure of their connected vehicle data. This is the FTC’s first action related to connected vehicle data.

In its complaint, the FTC alleged that Michigan-based GM used a misleading enrollment process to get consumers to sign up for its OnStar connected vehicle service and the OnStar Smart Driver feature. GM failed to clearly disclose that it collected consumers’ precise geolocation and driving behavior data and sold it to third parties, including consumer reporting agencies, without consumers’ consent.

“GM monitored and sold people’s precise geolocation data and driver behavior information, sometimes as often as every three seconds,” said FTC Chair Lina M. Khan. “With this action, the FTC is safeguarding Americans’ privacy and protecting people from unchecked surveillance.”

GM has offered OnStar as a service that will aid consumers during an emergency and provide hands-free voice assistance and real-time traffic and navigation. Over time, the company has increased the amount of data it collects through OnStar to include precise geolocation data—collected every three seconds for some users.

Tracking and collecting geolocation data can be extremely privacy invasive, revealing some of the most intimate details about a person’s life, such as whether they visited a hospital or other medical facility, and expose their daily routines.

When consumers bought a GM vehicle, they were encouraged to sign up for OnStar and its Smart Driver feature, which they were often told would be used to help them assess their driving habits. The FTC alleged, however, that GM’s enrollment process for the data collection for both its OnStar service and Smart Driver feature was confusing and misleading. In fact, some consumers were unaware that they had been signed up for the Smart Driver feature, according to the complaint.

In addition, GM failed to clearly disclose to consumers the types of information it collected through its Smart Driver feature, including that their geolocation and driving behavior data—such as every instance of hard braking, late night driving, and speeding—would be sold to consumer reporting agencies. These consumer reporting agencies used the sensitive information GM provided to compile credit reports on consumers, which were used by insurance companies to deny insurance and set rates.

And:

The proposed order would prohibit GM and OnStar from misrepresenting information about how they collect, use, and share consumers’ location and driver behavior data. Additional provisions of the proposed order require GM and OnStar to:

• Not disclose covered driver data to consumer reporting agencies: The proposed order would ban GM and OnStar from disclosing consumers’ geolocation and driver behavior data to consumer reporting agencies for five years from the date the order is entered.
• Obtain consent prior to collection: The companies must obtain affirmative express consent from consumers prior to collecting connected vehicle data, with some exceptions such as providing location data to emergency first responders.
• Allow consumers to obtain and delete their data: The companies must create a way for all U.S. consumers to request a copy of their data and seek its deletion.
• Allow consumers to limit data collection from their vehicles: The companies must also give consumers the ability to disable the collection of precise geolocation data from their vehicles if their vehicle has the necessary technology and provide a way for consumers to opt-out of the collection of geolocation and driver behavior data, with some limited exceptions.

Kudos to the FTC for smacking GM along with OnStar for being so shady when it comes to user data. This will hopefully put the rest of the car industry on notice that this is not acceptable. And if they were smart, they would be proactive and use this as a template to clean up their collective acts before the FTC knocks on their door to force them to do so.