By Connor Hart

General Motors reached an agreement to settle allegations that the automaker shared drivers' locations and behavior data without their consent, the Federal Trade Commission said on Thursday.

The Detroit company failed to clearly disclose to consumers that it collected precise geolocation and driving behavior data through its OnStar connected vehicle service and OnStar Smart Driver feature, the FTC alleged. This data was then sold to third parties, including consumer reporting agencies, without consumers' permission.

GM didn't immediately respond to a request for comment.

Under the settlement GM will be banned from disclosing consumers' geolocation and driver behavior data to consumer reporting agencies for five years. The company will take additional steps to provide greater transparency and choice to consumers over the collection, use and disclosure of their connected vehicle data, the agency said.

The FTC alleged that GM customers were encouraged to sign up for OnStar on the basis that it would be used to help them assess their driving habits. The company, however, failed to clearly disclose the types of information the service collected, or that the information would be sold.

Additionally, GM's enrollment process for this feature was confusing and misleading, the agency said, noting that some consumers were unaware that they had signed up for the service.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

January 16, 2025 16:52 ET (21:52 GMT)

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