General Motors has settled a consumer data privacy case with the Federal Trade Commission.
That's after a New York Times investigation found GM was selling its Onstar Smart Driver customers' geolocation and driving behavior data without their consent. That information included things like how frequently a driver speeds or hits the brakes hard.
Consumer data brokers such as Lexus Nexus Risk Solutions and Verisk could then sell the data to car insurance companies for purposes such as setting higher rates for drivers they considered riskier.
GM ended its Onstar Smart Driver program less than two months after the Times article was published. As part of the settlement with the FTC, GM has agreed not to sell geolocation and driver behavior data to any consumer reporting agency for five years.
The automaker will also obtain "affirmative customer consent" to collect, use, or disclose certain types of connected vehicle data for 20 years.
Other automakers also collect similar data, and the Times investigation found that drivers often consent to their carmaker's privacy policy without reading all the fine print, where information about data sharing can be hidden.
The Michigan Department of Insurance and Financial Services said insurers in Michigan are not prohibited from using third-party data in ratemaking models to establish auto insurance rates.
“As technology continues to advance, DIFS is working closely with regulators across the country to understand new developments and strengthen oversight of telematics in establishing rates," the agency said in a statement.
The Times investigation listed a number of ways consumers can find out what data their car company or a third party broker has collected from them. From the March 11, 2024 article:
How to Find Out What Your Car Is Doing
- See the data your car is capable of collecting with this tool: https://vehicleprivacyreport.com/.
- Check your connected car app, if you use one, to see if you are enrolled in one of these programs.
- Do an online search for “privacy request form” alongside the name of your vehicle’s manufacturer. There should be instructions on how to request information your car company has about you.
- Request your LexisNexis report: https://consumer.risk.lexisnexis.com/consumer
- Request your Verisk report: https://fcra.verisk.com/#/
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