FTC Bars GM From Sharing Driver Data With Insurers After OnStar Tracking Probe

The U.S. government has prohibited General Motors and its OnStar subsidiary from sharing detailed driver data with insurance companies, following a federal investigation into the automaker’s data collection and sales practices.

The Federal Trade Commission finalized an order finding that GM secretly gathered precise location and driving behavior data from more than one million vehicles, often recording activity every few seconds. The information included patterns such as hard braking, rapid acceleration, high speeds exceeding 80 miles per hour, and late-night driving. According to federal regulators, that data was sold to third-party brokers, including LexisNexis and Verisk, which compiled driver reports used by insurers to assess risk and adjust premiums.

In some cases, drivers experienced significant insurance rate increases without being told the source of the information. One driver reported an 80 percent premium increase after hundreds of driving records from her GM vehicle were shared with insurers. Regulators concluded that many drivers were unaware their vehicles were enrolled in the OnStar Smart Driver program or that their driving habits were being sold.

Vehicles sold under the Chevrolet, Buick, GMC, and Cadillac brands since 2016 may have been affected. The FTC determined that the enrollment process for the data-sharing program was misleading and did not clearly explain how driving data would be collected or used. GM ended the Smart Driver program in April 2024 following media reporting that brought the practice to light.

Under the settlement, GM and OnStar are barred for five years from sharing geolocation and driver behavior data with consumer reporting agencies. For the next 20 years, the companies must obtain explicit consent before collecting or sharing any connected vehicle data. GM is also required to delete previously collected information, allow consumers to access their data upon request, and provide an option to disable location tracking entirely. No financial penalties were imposed as part of the order.

Consumers can request access to or deletion of their data through GM’s privacy request process or by phone. Drivers may also obtain copies of any files held by LexisNexis or Verisk.

Although the FTC settlement does not provide compensation, multiple class action lawsuits are ongoing, with litigation expected to continue for several years.