FTC alleged in 2025 that GM collected, used, and sold consumers’ precise geolocation data and driving behavior data from millions of vehicles without adequately notifying consumers.
- GM is now banned from disclosing consumers’ geolocation and driver behavior data to consumer reporting agencies for five years.
- The agency also added that GM will now have to obtain affirmative express consent from consumers prior to collecting, using, or sharing connected vehicle data.
Automaker General Motors and its unit OnStar on Wednesday finalized an order with the Federal Trade Commission to settle allegations that it collected and sold consumer data without informed consent.
GM is now banned from disclosing consumers’ geolocation and driver behavior data to consumer reporting agencies for five years. “This fencing-in relief is appropriate given GM’s egregious betrayal of consumers’ trust,” FTC said.
The agency also added that GM will now have to obtain affirmative express consent from consumers prior to collecting, using, or sharing connected vehicle data and create a way for all U.S. consumers to request a copy of their data and seek its deletion. The company must also give its customers the ability to disable the collection of precise geolocation data from their vehicles, the order said.
GM shares fell 2% at the time of writing.
Data Collection, Sale Allegations
The FTC alleged in 2025 that the carmaker collected, used, and sold consumers’ precise geolocation data and driving behavior data from millions of vehicles without adequately notifying consumers and obtaining their affirmative consent. The agency said that GM used a misleading enrollment process to get consumers to sign up for its OnStar connected vehicle service and the OnStar Smart Driver feature and did not disclose that it is collecting or selling certain data to third parties.
GM OnStar is a subscription-based telematics service providing in-vehicle safety, security, and connectivity for General Motors vehicles, offering features like Automatic Crash Response, 24/7 emergency assistance, roadside help, stolen vehicle assistance, Wi-Fi hotspots, and navigation. The FTC alleged that GM increased the amount of data it collects through OnStar to include precise geolocation data—collected every three seconds for some users.
How Did Stocktwits Users React?
On Stocktwits retail sentiment around GM stock fell from ‘bearish’ to ‘extremely bearish’ territory over the past 24 hours while message volume stayed at ‘high’ levels.
A Stocktwits user said that they sold their GM shares and instead invested in EV startup Rivian (RIVN) on Wednesday morning.
GM stock has gained 60% over the past 12 months.
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