Earlier this year, the Federal Trade Commission imposed a five-year ban on General Motors from selling customer data to consumer reporting agencies and third-party data brokers. The FTC action followed years of GM collecting detailed driving information—including speeding habits and nighttime driving patterns—and sharing it with data brokers LexisNexis and Verisk for use in creating insurance risk profiles. Many drivers were unaware of the extent of data collection, having unknowingly consented through OnStar connected services enrollment. A 2024 investigation by The New York Times reported that some drivers experienced increased insurance rates as a result.
Research indicates the problem extends well beyond GM. A Mozilla Foundation study examining major automakers’ privacy policies found all had “horrible privacy and security” practices. Consumers face overlapping policies for vehicles, connected services, smartphone apps, and financial services, each containing data collection provisions. Consumer Reports similarly concluded that nearly every automaker selling vehicles in the U.S. collects and shares driver behavior data. The complexity of automotive data collection differs from smartphones, where privacy controls are more accessible; vehicle data collection spans multiple systems, making it difficult for consumers to understand or control.
Policymakers have begun addressing the issue, though privacy advocates express concerns about proposed solutions. Last December, House Republicans introduced the DRIVER Act, which would grant vehicle owners greater control over their data while permitting automakers to continue collecting and selling information to third parties. Critics argue this approach places the burden on individuals to discover and delete collected data rather than preventing excessive collection initially. The Trump administration separately proposed the “Freedom Car” concept, which would ban government requirements for automated driving systems or wireless data transmission capabilities.
Despite regulatory efforts and consumer demand for simpler vehicles with minimal data collection, automakers retain strong financial incentives to continue gathering information. The profitability of data monetization means companies lack motivation to voluntarily abandon collection practices absent stricter regulatory requirements or market shifts that make bare-bones vehicles economically viable.
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