Quick Answer: The FTC has finalized a settlement banning GM and OnStar from selling your driving data to consumer reporting agencies for five years. The companies secretly collected location and driving behavior data from millions of vehicles and sold it to data brokers—who then sold it to insurance companies to justify raising your rates.
Your car has been spying on you. And it’s been snitching to your insurance company.
The Federal Trade Commission just finalized a landmark order against General Motors and OnStar for what the FTC called an “egregious betrayal of consumers’ trust.” The companies collected precise geolocation data and driving behavior information from millions of vehicles—then sold it without proper consent.
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Where did that data end up? In the hands of data brokers like LexisNexis Risk Solutions and Verisk, who turned around and sold it to car insurance companies. Your hard braking, your speeding, your location data—all packaged up and used to potentially raise your insurance rates.
What GM Collected: Precise geolocation data, how often you speed, hard braking incidents, and other driving behaviors—all through the OnStar Smart Driver feature many consumers didn’t realize was tracking them.
What the FTC Settlement Requires
The settlement imposes significant restrictions on GM for the next two decades:
Under the 20-year order, GM must:
- Get your explicit consent before collecting, using, or sharing your vehicle data
- Let you request a copy of your data and delete it
- Give you the ability to disable geolocation tracking
- Provide a way to opt out of driving behavior data collection
The Bigger Problem: Your Data Is the Product
This case is about more than just GM. It’s a reminder that in today’s connected world, your data is constantly being collected, packaged, and sold—often to companies that will use it against your financial interests.
The Insurance Connection: Data brokers bought your driving data from GM and sold it to insurance companies. Those companies used it to justify higher premiums. You were paying more for insurance because your car was reporting on you.
GM actually discontinued its Smart Driver service in April 2024 after a New York Times investigation exposed the data-selling practices. But the damage was done—millions of drivers had their information collected and sold without meaningful consent.
What You Can Do Now
If you own a GM vehicle with OnStar capabilities, the settlement gives you new rights:
- Request a copy of all data GM has collected about your driving
- Demand deletion of your driving behavior data
- Disable geolocation tracking if your vehicle supports it
- Opt out of future data collection
But here’s the uncomfortable truth: GM isn’t the only automaker collecting this data. Most modern connected vehicles gather similar information. This settlement should be a wake-up call to check the privacy settings on any connected car you drive.
The Real Cost: The FTC imposed no financial penalty on GM. The company collected and sold your data without consent, that data was used to raise insurance rates, and GM pays nothing. The only consequences are behavioral restrictions going forward.
Why This Matters for Your Finances
Higher insurance premiums hit everyone’s budget. If you’ve noticed your car insurance rates climbing and couldn’t figure out why, data-sharing practices like GM’s could be part of the answer.
If you’re struggling with bills—including rising insurance costs—and debt is piling up, know that there are options. Every financial situation is different, and what works for one person may not work for another.
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Key Takeaways
- GM and OnStar secretly collected and sold driving data from millions of vehicles
- Data was sold to brokers who resold it to insurance companies
- FTC banned data-sharing with consumer reporting agencies for 5 years
- 20-year requirements for consumer consent and opt-out options
- No financial penalty—only behavioral restrictions
Frequently Asked Questions
How do I know if my GM vehicle was affected?
If you owned a GM vehicle with OnStar capabilities and enrolled in the Smart Driver feature, your data may have been collected and sold. Contact OnStar directly to request information about what data was collected from your vehicle.
Can I get compensation for my data being sold?
The FTC settlement does not include compensation for affected consumers. However, you now have the right to request deletion of your data and opt out of future collection.
Will this affect my insurance rates going forward?
The 5-year ban prevents GM from sharing data with consumer reporting agencies, which may limit how insurance companies can use this specific data. However, insurance companies have many other ways to assess risk and set rates.
Are other car manufacturers doing the same thing?
Many connected vehicles collect similar data. This FTC action is the first targeting connected vehicle data practices, but it likely won’t be the last. Check the privacy settings and data-sharing agreements on any connected car you drive.
How do I opt out of data collection on my GM vehicle?
Under the settlement, GM must provide a way to disable geolocation tracking and opt out of driving behavior data collection. Contact OnStar or check your vehicle’s connected services settings for opt-out options.
(Source: Federal Trade Commission)
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