General Motors marketed its connected-driver system as a tool that would let parents monitor teen drivers and adults track driving behavior. In 2024, however, reports revealed that GM had shared the data with brokers, who sold it to insurance companies. Some drivers said the resulting information contributed to higher premiums and that they did not know they had agreed to the data sharing.
GM agreed to restrict connected-car data sharing
In 2025, GM and its OnStar subsidiary reached a settlement with the Federal Trade Commission. The agreement, completed in January 2026, prohibits the companies from sharing certain geolocation and driver-behavior data with third parties for five years. GM also discontinued its entire lineup of smart-driver products at that time.
The automaker has now reached a separate agreement with the District of Columbia and 35 state attorneys general, who had joined forces to sue GM over the handling of drivers’ data.
GM said in a statement, “Connected car data then enables more convenient and personalized experiences, and GM is committed to being clear about what information is used, how it is protected, and the choices customers have about what they share.”
According to TechCrunch, the agreement with the states requires a third party to evaluate GM’s compliance with its new privacy program.
Source: arstechnica.com