General Motors Faces Penalty for Unauthorized Data Sharing

General Motors has been penalized for improperly sharing customer data without obtaining necessary consent. This decision comes after regulators identified that the automaker had disclosed sensitive information, such as driver behavior and location, to credit reporting agencies over a five-year period. The ruling raises significant concerns about data privacy in the automotive sector.

The increase in data collection from vehicles has surged by approximately 60% in recent years. This trend highlights a pressing issue regarding how car manufacturers manage the vast amounts of data generated by their vehicles. General Motors was specifically banned from providing driver data to credit agencies due to allegations that it shared details like speeding habits and nighttime driving without authorization.

Understanding Vehicle Data Collection

Modern cars are equipped with telematics systems, which serve as integrated computers that communicate with various applications, navigation tools, and sometimes directly with the manufacturer’s servers. These systems gather data from a range of sources, including GPS, connected devices, cameras, and even routine functions such as steering and door usage. The concern lies not just in what is being tracked but also in who has access to this information.

Data brokers, marketing firms, and insurance companies can sometimes gain access to this information. This was the case with General Motors, where driver data was shared without explicit consent, prompting regulatory action.

Andrea Amico, founder of Privacy4Cars, emphasizes the importance of transparency regarding vehicle data collection. “The first thing drivers should do is find out what data their car collects,” she advises. She recommends consulting the dealership or reviewing privacy documents and user manuals, although she notes these resources may not always provide clear information. To assist drivers, Privacy4Cars offers an online tool where users can input their vehicle identification number (VIN) to discover what data may be collected and whether it is shared with third parties.

Taking Control of Personal Data

Vehicle data collection often begins as soon as a driver agrees to terms during the setup of a new car. Fortunately, many manufacturers allow users to modify their data-sharing settings. Lauren Hendry Parsons from Mozilla points out that “there are permissions in the settings that you can modify.” Drivers are encouraged to review these options carefully.

Several automakers, including Toyota and Ford, provide clear instructions for opting out of data sharing. Toyota’s app enables drivers to decline “master data consent,” while Ford allows owners to stop data exchange through its mobile app or dashboard. BMW offers a range of privacy settings that can limit data sharing, but users should be aware that disabling certain features may affect services like roadside assistance.

In the United States, many companies offer options for consumers to limit data usage or request its deletion, particularly in states with stringent privacy laws. Privacy4Cars also provides resources to help expedite these requests across the U.S., Canada, the EU, the UK, and Australia. However, it’s essential to understand that disabling specific data flows may impact vehicle functionality.

Preparing for Vehicle Resale

For those considering selling their vehicles, experts recommend performing a factory reset to eliminate stored information, disconnecting any linked devices, and notifying the manufacturer about the new owner. If a vehicle remains connected to the previous owner, it could continue transmitting data tied to them, potentially affecting their driving record.

Amico warns, “Now your record may be affected by the driving of another person, a complete stranger with whom you have no relationship.” If the vehicle continues to share data while connected to the previous owner, any negative driving behavior could reflect poorly on them.

The case against General Motors serves as a reminder of the importance of data privacy in the automotive industry. As vehicles become increasingly connected, consumers must remain vigilant about their data and the implications of sharing it with manufacturers and third parties.