General Motors has been caught by a previous investigation by the New York Times that prompted the Federal Trade Commission to look into the matter, and now, the company is banned from selling US driving data to third parties. Drivers who own GM cars were not asked for their consent regarding the access and tracking of their driving data, but the massive company from the Big Three settled the case.
As part of this settlement, General Motors is now blocked from selling users' driving data to any other third-party entities for five years, and this includes geolocations, driving behavior data, and more.
GM to No Longer Sell Your Driving Data After FTC Settlement
After the famed investigation by the New York Times against General Motors' handling of user data, the FTC took action against the renowned car company for its mishandling of user data and invasion of privacy, which tracked its activity. In the latest release by the Commission, they have placed a ban against General Motors from selling US users' driving data to third parties, as part of the settlement agreement.
The proposed order from the FTC blocked GM "for five years from disclosing consumers' sensitive geolocation and driver behavior data to consumer reporting agencies" and is also ordering them to provide better transparency to GM car owners.
Moreover, the Commission asked GM to provide users with the "choice" regarding the collection, use, and disclosure of their data, a.k.a. asking for consent regarding what they can do with this information.
GM's Driving Data Sale Fiasco: Invading User's Privacy
According to The Verge, the investigation centered on use cases where insurance companies like LexisNexis and Verisk charged users more, and for those who disputed it and received a "consumer disclosure report," it was revealed that their trips were tracked by GM. Users were stunned that their driving activities were monitored by GM and shared with third parties, and in this case, insurance companies, which then led to higher fees and more scrutiny.
General Motors and Its Vehicle Developments
General Motors is part of the so-called 'Big Three' of the United States automotive industry, and they are known for delivering renowned brands to the world, including Chevrolet, Hummer, Cadillac, and more. However, GM is inherently famous because of its infamous decision to ditch the use of Apple CarPlay and Android Auto, as it opted for its self-made infotainment connectivity system.
Moreover, GM is also famous for their universal battery architecture for their new era of electric vehicles featuring the "Ultium" power cells, which the company used for their cars since their massive switch. According to GM, it is now exploring other battery options for its EVs as the Ultium architecture is not a perfect fit for other cars, with its approach looking for a more specific one for a certain development.
Over the past years, GM's development has been heavily regarded by users and has seen considerable accolades as they have expanded the technology and experiences of their cars, including the arrival of more electric vehicles for users. However, despite all of the company's efforts, they had been caught selling driving data to third parties, and their latest settlement means that this information will now be protected for five years.
