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General Motors (GM) has received a five-year restriction on sharing driver data with consumer reporting agencies, stemming from a settlement with federal regulators. The action follows accusations that GM shared sensitive data without obtaining proper consent from the drivers involved.
As a part of this agreement, GM, along with its OnStar division, is prohibited from disseminating precise geolocation information and other related data. Furthermore, the company is mandated to enhance transparency concerning data collection practices and to offer consumers more control over their information.
The Federal Trade Commission (FTC) contends that GM enacted a deceptive enrollment strategy for its OnStar services and the associated Smart Driver feature, which was marketed as a means for consumers to evaluate their driving habits.
According to the FTC’s allegations, GM neglected to adequately inform consumers about the collection and potential sale of their precise location and driving behavior data to third parties.
The automaker reportedly sold this data, which included instances of speeding or night driving, to consumer reporting agencies. These entities then aggregated the information to create credit reports, which insurance companies relied on when determining policy rates, as highlighted in the FTC’s complaint.
FTC Chair Lina Khan emphasized the significance of the enforcement action, stating, “GM monitored and sold people’s precise geolocation data and driver behavior information, sometimes as often as every three seconds. With this action, the FTC is safeguarding Americans’ privacy and protecting people from unchecked surveillance.”
In response, GM confirmed the settlement with the FTC through a public statement, indicating that its Smart Driver service had been phased out last year, resulting in the unenrollment of all participating customers. Additionally, the company announced the termination of its partnerships with data providers LexisNexis and Verisk Analytics.
The FTC’s inquiry commenced after a request from two U.S. senators in July for a thorough examination into the data-sharing practices of GM and other automotive manufacturers.
Source
www.yahoo.com