FTC Slaps GM With Five-Year Ban on Selling Driver Data to Brokers
The Federal Trade Commission has taken unprecedented action against General Motors, imposing a five-year ban on the automaker selling customer data to consumer reporting agencies and third-party data brokers. The FTC found that GM had been collecting extensive information about its customers' driving habits—including how often they sped, whether they drove at night, and other behavioral patterns—and monetizing this data through broker relationships.
The penalty represents a significant escalation in federal oversight of how automakers handle the vast amounts of data generated by modern vehicles. Modern cars with connected services, telematics, and infotainment systems collect substantial personal information, creating new revenue streams through data sales that have largely operated without meaningful regulatory scrutiny.
Privacy advocates have long warned that vehicles have become sophisticated data-collection platforms, often with minimal disclosure to consumers about how their driving behavior and personal information might be shared or sold. The FTC's action signals that regulators are beginning to treat automotive data practices with the same seriousness applied to other consumer data industries.
Under the settlement, GM is prohibited from sharing driving behavior data with data brokers and consumer reporting agencies for five years, though the full details of the FTC's requirements remain subject to ongoing regulatory proceedings.