Full Breakdown
FTC Finalizes Order Against GM for Data Privacy Violations
1/15/2026, 8:50:02 PM
Overview of the FTC's Final Order
On January 14, 2026, the Federal Trade Commission (FTC) finalized an order against General Motors (GM) and its OnStar subsidiary, concluding a lengthy investigation into the companies' practices regarding the collection and sharing of consumer data. The FTC's order addresses allegations that GM and OnStar collected and sold precise geolocation and driving behavior data without obtaining explicit consent from consumers. The order prohibits GM from sharing this data with consumer reporting agencies for five years and mandates that the company must obtain affirmative consent from consumers before collecting or sharing such information.
Background and Context
Concerns about GM and OnStar's data practices emerged prior to the FTC's intervention, fueled by consumer complaints and media reports. A notable New York Times article highlighted how GM collected and sold drivers' geolocation data to third parties, including data brokers like LexisNexis and Verisk, which in turn sold this information to insurance companies. The FTC's investigation began after these revelations, leading to a proposed complaint and consent order in January 2025, which alleged violations of Section 5 of the FTC Act due to deceptive practices.
Key Provisions of the Final Order
The finalized order imposes several key requirements on GM:
- A five-year ban on sharing geolocation and driving behavior data with consumer reporting agencies.
- A requirement for GM to obtain explicit consent from consumers before collecting, using, or sharing connected vehicle data, with limited exceptions for safety-related purposes.
- Obligations to provide consumers access to their data, the ability to request deletion, and meaningful opt-out mechanisms for certain data collection practices.
Official Statements & Responses
GM has stated that it is committed to protecting customer privacy and has already begun implementing changes to its data collection policies. The company emphasized that it has consolidated its privacy statements and expanded its privacy program to enhance transparency for consumers. GM spokesperson Charlotte McCoy remarked, “The Federal Trade Commission has formally approved the agreement reached last year with General Motors to address concerns.”
Criticism & Opposition
The FTC characterized GM's actions as an "egregious betrayal of consumers’ trust," indicating a significant breach of privacy expectations. Former FTC Chair Lina Khan noted that the agency's action aims to safeguard Americans’ privacy and protect individuals from unchecked surveillance. Critics argue that the lack of clear communication regarding data collection practices contributed to consumer confusion and mistrust.
What's Next
As part of the order, GM must establish a system for U.S. consumers to request copies of their data and seek its deletion. The company is also required to provide consumers with the ability to disable the collection of precise geolocation data from their vehicles. These measures are intended to enhance consumer control over personal data in an increasingly connected automotive landscape.
Verbatim Quotes
- “With this action, the FTC is safeguarding Americans’ privacy and protecting people from unchecked surveillance.” — Lina Khan, Former FTC Chair
- “We take our customers' data security and privacy very, very seriously,” — Mary Barra, CEO of GM
- “ GM responded in a statement from spokesperson Charlotte McCoy: “The Federal Trade Commission has formally approved the agreement reached last year with General Motors to address concerns.” — Charlotte McCoy, GM Spokesperson
