A New York Times report in March highlighted that GM’s data sharing through OnStar’s Smart Driver app led to higher auto insurance premiums for some individuals. In response, GM announced in April that it would discontinue the Smart Driver program and unenroll customers over the coming months.
“Customer trust is very important to us, which is why we are taking decisive actions to enhance our privacy processes and policies,” a GM spokesperson said.
The automotive data privacy issue has also drawn attention from other state and federal authorities. Last August, California’s privacy agency began investigating connected-car manufacturers’ data collection and disclosure practices. Similarly, Connecticut’s attorney general is scrutinizing these practices, and the U.S. Department of Commerce is considering regulations to address data privacy and security risks posed by imported vehicles with advanced data systems.
Consumer advocacy groups have echoed these concerns. A report from the Mozilla Foundation described modern vehicles as “a privacy nightmare,” prompting congressional inquiries. Sen. Edward Markey, D-Mass., has called for automakers to implement stronger privacy policies and urged the Federal Trade Commission to investigate the industry’s data practices.
