So, remember that time General Motors was caught red-handed sharing our driving data with, well, pretty much anyone who'd pay for it? Yeah, the FTC finally stepped in and said, "Enough is enough." After a proposed settlement last year, they've officially banned GM from sharing specific consumer data with third parties. This whole mess started when it came to light that GM's OnStar "Smart Driver" program was collecting detailed geolocation and driving behavior data, then selling it to data brokers. And you can imagine what happened next.

Those brokers then turned around and sold that info to insurance providers, who then promptly jacked up rates for some drivers. I mean, can you imagine? A Chevy Bolt owner saw his insurance rise by 21 percent because of this. He said it "felt like a betrayal." It's totally understandable, right? You buy a car, thinking you're just getting from point A to point B, and suddenly, your driving habits are being used against you.

But, there's a twist. According to the settlement terms, GM can't share specific user data with consumer reporting agencies for five years. Plus, they now have to get your explicit permission before collecting, using, or sharing your vehicle data. That means when you're at the dealership, buying a new car, they have to ask you face-to-face if you're okay with them tracking your every move.

However, there's a bit of an anticlimactic end to this story. GM actually stopped its Smart Driver program for all brands back in April 2024. They unenrolled everyone and ended their relationships with LexisNexis and Verisk, the data brokers. So, in a way, the FTC's ruling is almost like shutting the barn door after the horses have already bolted. It's good that it's happening, sure, but the damage is arguably already done.

And make no mistake, GM faced other legal actions as well, including lawsuits from Texas, Nebraska, and other states. The Texas AG, Ken Paxton, even said that GM engaged in "egregious business practices" that violated Texans' privacy. Strong words, but probably justified.

In a statement, GM said they remain committed to protecting customer privacy. But I'll believe it when I see it. As vehicle connectivity becomes more and more a part of the driving experience, it's crucial that companies like GM prioritize our privacy. We, as consumers, need to be vigilant and demand transparency. It is our right to know how our data is being used and to have control over it.