Automakers Collecting and Selling Driver Data Without Clear Consent
General Motors recently faced an FTC penalty that banned it from selling customer data to third parties for five years. The company had been collecting detailed driving behavior, such as speeding patterns and nighttime driving through its OnStar Smart Driver feature, which many users unknowingly agreed to when signing up for connected services. This data was shared with brokers like LexisNexis and Verisk, used by insurance companies to assess risk profiles — often leading to higher premiums without driver awareness. Mozilla Foundation researchers found that all major automakers have poor privacy practices, collecting vast amounts of personal data through overlapping policies across cars, apps, financial services, and connected features. Consumer Reports confirmed similar findings in 2023, noting the lack of transparency and control for users compared to smartphones. The complexity makes it difficult for consumers to understand or manage their data. In response, a proposed bill called the DRIVER Act aims to give vehicle owners more rights over their data but still allows automakers to sell information to third parties — a point criticized by privacy advocates as insufficient.
Topics: Automotive Consumer Data Collection FTC Regulation Privacy Policies