How the FTC’s Data-Sharing Order Changed GM’s Handling of Geolocation Data

You might not realize it, but every time your car communicates with a service or app, it often shares sensitive data—including your precise location. Exactly this issue landed General Motors (GM) under scrutiny, leading to a major regulatory intervention.

Last year, the Federal Trade Commission (FTC) proposed an order that finally settles how GM can handle geolocation data. This order bans GM from collecting and then selling location data to third parties, like data brokers and insurance companies. It’s an important move with significant implications for consumer privacy and corporate data policies.

What Does the FTC Order on GM’s Data Sharing Actually Involve?

The core of the FTC’s order is straightforward: GM is prohibited from collecting geolocation data from customers’ vehicles and selling it onward. This includes sharing data with data brokers, who aggregate information to sell to other businesses, and insurance companies that might use location data for risk assessment or pricing.

Geolocation data refers to information about a device’s or vehicle’s location in real-time or over a period. While useful for enhancing navigation, safety features, or vehicle maintenance, when exploited improperly, it raises serious privacy concerns.

GM’s prior practices included collecting this data through connected vehicle services and then selling it to various third parties. The FTC’s action aims to stop this practice and set a precedent on how the automotive industry must respect consumer data privacy.

How Does GM’s Data Collection Impact You and Why Should You Care?

Think about your daily commute or the errands you run: If your vehicle’s location is constantly tracked and shared, it potentially reveals sensitive personal habits or routines. Such data in the wrong hands can lead to targeted advertising, increased insurance premiums, or worse, security risks.

From direct experience, leaking geolocation data is like giving strangers a map to your daily life. This is why regulatory orders like the FTC’s have a tangible impact on protecting individuals’ privacy rights.

But simply banning data sales may also challenge how companies like GM innovate with advanced services. For example, real-time traffic updates or vehicle diagnostics often rely on location data. The key trade-off lies between improving customer experience and preserving privacy.

What Are the Technical Challenges in Controlling Geolocation Data?

The technical side isn’t trivial. Automotive systems generate vast amounts of data, including GPS coordinates, sensor readings, and user preferences. Ensuring this data doesn’t leak or get sold requires:

• Robust data governance frameworks that strictly define who can access data and for what purposes
• Secure transmission protocols to prevent unauthorized interception
• Clear data minimization strategies—collecting only what’s essential for operation, not everything that might be monetized

Failing at any step puts user privacy at risk and invites regulatory penalties.

Why Is the FTC’s Action Against GM a Significant Precedent Today?

Car manufacturers are increasingly becoming data companies, using telematics and connected services to generate revenue streams beyond vehicle sales. The FTC’s order sends a clear message: consumer data isn’t a free-for-all resource.

This action encourages companies to rethink their data monetization strategies and prioritize customer trust. For you, as a consumer, it offers some assurance that regulators are taking concrete steps to protect your privacy.

When Should Consumers Be Wary of Vehicle Data Sharing?

Not all data-sharing is harmful or illegal—but transparency and consent are crucial. You should watch out when:

• Data is shared for advertising or pricing without clear opt-in
• Third parties gain access to personal location or behavioral data without restrictions
• Privacy policies are vague or difficult to understand

Understanding how your data is handled can empower you to make informed choices about technology use, including vehicle purchase and connected services.

How Can Companies Balance Innovation and Privacy in Data Collection?

The key lies in purpose limitation and data minimization. Collect only what’s necessary, use it responsibly, and never sell consumer data without explicit consent. Advanced techniques like anonymization and edge computing (processing data locally in the vehicle rather than transmitting it) can reduce privacy risks without sacrificing functionality.

However, these require investment in technology and processes—which may deter short-term profits but build long-term customer loyalty.

What Steps Can You Take Today to Control Your Vehicle’s Data?

If you drive a connected vehicle, you can:

• Review your vehicle’s privacy settings and disable unnecessary data sharing where possible
• Read privacy policies to understand what data is collected and shared
• Contact your vehicle manufacturer or dealer about their data handling practices

These actions take just minutes but can significantly improve your digital safety.

Summary

GM's settlement with the FTC marks a turning point in how automotive companies must handle geolocation data. The ban on selling location data reinforces privacy protection while challenging companies to innovate responsibly.

As vehicles become ‘smart’ data platforms, society must balance technological benefits with the critical need to safeguard personal information. For you, awareness and proactive control are key steps in keeping your data safe.

Next Steps to Implement

In the next 20-30 minutes, do a quick audit of your vehicle’s in-app or dashboard privacy settings. Disable any data sharing options that aren’t critical for operation. Check your insurance policy to see if they use location data for pricing, and reach out to your vehicle provider for more transparency on their data practices. Staying informed and assertive is your best defense.