The Federal Trade Commission finalized a consent order on January 14, 2026 that bars General Motors and its OnStar telematics service from sharing certain connected‑vehicle data with consumer reporting agencies such as LexisNexis and Verisk. The order follows a 2024 New York Times investigation that revealed GM’s Smart Driver program had sold drivers’ precise location and driving‑behavior data to third‑party brokers. GM shut down the program in April 2024, but the FTC’s order imposes a five‑year prohibition on any future sharing of that data with credit‑reporting firms.
Under the consent order, GM must obtain explicit, opt‑in consent from vehicle owners before collecting, using, or sharing connected‑vehicle data. The consent process will take place at the dealership during the vehicle purchase, and owners will be asked whether they agree to data collection. The order also requires GM to provide a mechanism for consumers to request a copy of their data, delete it, or disable the collection of precise geolocation data. Exceptions are limited to emergency first‑responder access, internal research and development, and de‑identified data shared with partners for public‑benefit initiatives such as urban planning.
The FTC characterized the prior data‑sharing practices as an “egregious betrayal of consumers’ trust,” underscoring the severity of the violation. GM’s statement acknowledges the settlement and reaffirms its commitment to protecting customer privacy, noting that the consent order “includes new measures that go above and beyond existing law.” The company also highlighted that it has already taken steps to establish choices for customer data collection and communications about how the information is used.
Market reaction to the order was muted but measurable: GM’s shares fell 2% following the announcement, reflecting investor concern about compliance costs and the loss of a potential revenue stream from data monetization. The decline also signals that the market views the regulatory restriction as a headwind to GM’s future data‑driven initiatives.
The order represents a broader shift in the automotive industry toward stricter data privacy controls. By requiring explicit consent and limiting data sharing, the FTC is setting a precedent that may prompt other automakers to review and tighten their own data‑collection practices. For GM, the compliance costs and operational changes are significant, but the company’s focus on privacy could enhance consumer trust and differentiate it in a market increasingly sensitive to data security.
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