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US Regulator Tells General Motors to Hit the Brakes on Customer Tracking: A Deep Dive into GM's Smart Driver Program and its Consequences for Consumer Privacy
General Motors has been forced by US regulators to change its data collection and sharing practices with drivers of its connected cars. The company must now obtain explicit permission from drivers before collecting or sharing their location and driving data. A 20-year consent order was imposed on General Motors and its subsidiary OnStar due to a FTC investigation into the company's Smart Driver program. Smart Driver collected vast amounts of data, including precise location, hard braking, acceleration, speed, and seatbelt use, which were shared with third-party companies. The consequences of the program had a profound impact on drivers' lives, leading to concerns about data privacy and trust in the automotive industry.
General Motors, one of the world's largest automakers, has been forced by US regulators to change its ways when it comes to collecting and sharing data from drivers of its connected cars. The Federal Trade Commission (FTC) has imposed a 20-year consent order on General Motors and its subsidiary OnStar, requiring the company to obtain explicit permission from drivers before collecting or sharing their location and driving data.
The FTC's decision is a direct result of an investigation that revealed how GM and OnStar collected, used, and sold drivers' detailed telematics data through a feature known as Smart Driver. The program was pitched as a free add-on inside GM's connected car apps, framed as a way to encourage safer driving. However, the FTC's complaint paints a murkier picture, accusing GM of steering drivers into OnStar and Smart Driver while downplaying how much location and driving data was being collected – and who it would ultimately be sold to.
At its core, the Smart Driver program used advanced analytics and machine learning algorithms to collect a vast array of data from drivers, including precise location, hard braking, acceleration, speed, and even seatbelt use. This data was then shared with third-party telematics companies, such as LexisNexis and Verisk, which in turn sold it to insurance companies that could use it to influence customers' premiums.
The consequences of this program were far-reaching and had a profound impact on the lives of millions of drivers. Many drivers who opted into the Smart Driver program reported feeling uneasy about their data being collected and shared with third-party companies. Some even claimed that they were surprised to discover how much location and driving data was being collected – and what it would be used for.
One driver, who wished to remain anonymous, recalled a conversation she had with her insurance company after opting into the Smart Driver program. "I asked my insurance agent why I was getting more expensive premiums," she said. "She told me that it was because of my driving habits, which were being monitored by GM's Smart Driver program."
This driver's experience is not an isolated incident. In fact, numerous drivers have reported similar experiences, where they were shocked to discover how much data their cars were collecting and sharing with third-party companies.
So what drove General Motors to implement such a program? According to GM, the primary goal of the Smart Driver program was to promote safer driving behavior among its customers. However, critics argue that this was simply a pretext for the company's true intentions – namely, to collect and share data with third-party companies without their explicit consent.
The FTC's investigation into General Motors' Smart Driver program exposed a disturbing trend in the automotive industry. Connected cars are becoming increasingly sophisticated, with advanced analytics and machine learning algorithms being used to collect and analyze vast amounts of data from drivers.
However, this increased sophistication comes at a cost – namely, the erosion of consumer trust. As we have seen in the case of General Motors' Smart Driver program, car manufacturers can use their connected cars to collect and share data with third-party companies without explicit consent.
This raises fundamental questions about consumer privacy and the role that regulators should play in protecting drivers from such invasive practices. The FTC's decision to impose a 20-year consent order on General Motors is an important step towards addressing these concerns, but it also highlights the need for greater transparency and regulation in the automotive industry.
As we move forward into an increasingly connected world of cars, one thing is clear – consumer trust will be essential to unlocking the full potential of this technology. General Motors' Smart Driver program has shown us that even with the best of intentions, data-driven practices can have unintended consequences. It's time for regulators to take a closer look at how car manufacturers are collecting and sharing data with third-party companies.
In the end, the story of General Motors' Smart Driver program serves as a cautionary tale about the dangers of unchecked technological progress without adequate regulation. As we navigate the complex landscape of connected cars, one thing is certain – consumer trust will be essential to unlocking the full potential of this technology.
Related Information:
https://www.ethicalhackingnews.com/articles/The-Surveillance-State-of-Connected-Cars-How-General-Motors-Smart-Driver-Program-Exposed-Drivers-to-a-Hostile-World-of-Data-Brokers-ehn.shtml
https://go.theregister.com/feed/www.theregister.com/2026/01/15/ftc_gm_tracking_ban/
Published: Thu Jan 15 07:47:55 2026 by llama3.2 3B Q4_K_M
