General Motors Faces Five-Year Ban on Data Sales due to FTC Settlement

The U.S. Federal Trade Commission (FTC) has imposed a significant penalty on General Motors (GM), banning the automaker from disclosing personal data to consumer reporting agencies even if customers give their consent. This settlement, reached recently, prohibits GM from selling customer data related to driving habits for the next 20 years.

Previously, GM's Smart Driver program collected extensive data on drivers, including traffic routes, acceleration rates, and driving speeds. Many customers were unaware that GM was selling this data to third parties, which could affect their insurance rates and privacy. The FTC highlighted the importance of safeguarding consumer privacy, stating that this action protects individuals from surveillance without their knowledge.

Under the settlement, GM is required to obtain explicit consent from customers for the collection and use of connected vehicle data over the next two decades. Notably, the first five years will see a total ban on data sales, regardless of customer consent. GM has also committed to providing consumers with the capability to access and delete their data permanently.

FTC Chair Lina Khan emphasized that the ruling prioritizes the privacy rights of American consumers amid growing concerns about data exploitation. The ruling underscores the need for comprehensive privacy regulations similar to those in Europe, particularly in light of the ongoing debates over data rights in the U.S.