**FTC Takes Steps Against General Motors and OnStar for Unauthorized Data Sales**
In a crucial effort to safeguard consumer privacy, the Federal Trade Commission (FTC) has taken action against General Motors (GM) and its subsidiary OnStar for purportedly selling location and driving data from millions of vehicle owners without their explicit consent. This information, which was gathered as often as every three seconds, has ignited significant concerns regarding privacy and transparency in the automotive sector.
### Claims of Deceptive Practices
The FTC’s probe uncovered that GM and OnStar amassed extensive data on customers who signed up for the OnStar connected vehicle service and the OnStar Smart Driver feature. This data encompassed sensitive details such as instances of hard braking, speeding, and driving habits, including late-night excursions. The FTC claims that this information was sold to consumer reporting agencies, which used it to formulate profiles that could affect insurance costs, potentially resulting in increased premiums or even denial of coverage.
A major point of dispute in the case is whether consumers were sufficiently informed about the data collection and sharing practices at the time of purchase. While GM and OnStar assert that consumers were aware of these practices, the FTC contends that the enrollment procedure was misleading and did not adequately reveal the scope of data collection and its implications.
### Five-Year Prohibition on Data Sales
To tackle these claims, the FTC has suggested a five-year prohibition on GM and OnStar’s capacity to sell sensitive geolocation and driving behavior data to outside parties. This settlement aims to guarantee that any future data sharing occurs transparently, with explicit consumer consent acquired in advance.
Under the proposed agreement, GM and OnStar must implement strategies that improve consumer awareness and options regarding the collection and utilization of their connected vehicle data. By consenting to these conditions, GM and OnStar can resolve the issue without incurring further penalties.
### Consequences for Consumer Privacy
This case highlights the escalating concerns about data privacy within the automotive industry. As vehicles grow more interconnected and data-centric, the risk of personal information misuse increases. The FTC’s action serves as a reminder for consumers to remain vigilant about the data they disclose and the terms of service they accept when buying connected vehicles.
### The Emergence of CarPlay 2
The debate surrounding GM and OnStar’s data practices may also strengthen the argument for alternative platforms like Apple’s CarPlay 2. This new system intends to oversee various vehicle data mechanisms, including infotainment and driving tools, while conforming to strict privacy guidelines. However, the rollout of CarPlay 2 has encountered setbacks, as multiple deadlines have passed without any automakers launching the system.
Automakers may be reluctant to embrace CarPlay 2 due to fears of losing access to vital data currently collected from their own systems. Nevertheless, the persistent privacy challenges related to data sales may motivate consumers to favor vehicles that provide strong privacy protections, such as those offered by CarPlay 2.
### Conclusion
The FTC’s initiative against General Motors and OnStar signifies an important juncture in the ongoing conversation regarding consumer privacy in the digital era. As the automotive field continues to advance technologically, the demand for transparency and consumer consent will become increasingly essential. This case not only underscores the necessity of informed consent but also highlights the potential advantages of adopting privacy-centered technologies like CarPlay 2. As consumers grow more cognizant of their data rights, they may increasingly seek accountability and transparency from automakers concerning their data practices.
