FTC sues GM for selling location and behavioral data without drivers' consent

General Motors (GM) failed to disclose to customers that it tracked their precise locations and driving behavior and sold the data to third parties, the Federal Trade Commission (FTC) alleged in a proposed order.

GM and most other automakers offer internet connectivity with their cars. Car companies that collect the data end up with huge amounts of information about people, their driving habits, and the places they visit. The federal government considers this information private and protected under rules that require that people give their consent before any sensitive or personal data, including location data, is collected.

GM offered its customers an internet-connected service called OnStar that collected massive amounts of data about people, such as instances of hard braking and speeding, and sold it to credit reporting agencies, who made it available to insurers, the FTC alleged in a proposed order Thursday. The case is the agency’s first related to automobile connectivity and privacy.