GM banned from selling your driving data for five years

In a significant milestone for privacy advocates, the Federal Trade Commission (FTC) has recently barred General Motors (GM) from selling data collected from its connected cars to insurance companies. The action was taken after it was revealed that the automobile giant was selling data about the driving habits of its customers, raising serious concerns about privacy and data security. The FTC highlighted that GM was in violation of its privacy policy, which states that any data collected would not be used for marketing or sold to third parties without the explicit consent of the customer.

Connected cars, a rapidly evolving technology, enables vehicles to connect to the internet, other vehicles, and infrastructure, offering a plethora of benefits ranging from enhanced safety features to entertainment options. However, this also opens up a Pandora's Box of potential privacy and data security risks. The data collected from these vehicles can reveal intimate details about the driver's lifestyle and habits. This data, when in the wrong hands, can be misused in numerous ways. The FTC's action against GM is therefore seen as a significant step towards ensuring the privacy of connected car users.

Interestingly, the FTC's decision does not outright ban the sale of such data but rather emphasizes on obtaining the explicit consent of the customers. This implies that GM or any other car manufacturer can still sell driving data, provided they have the explicit approval of the customer. However, this decision is expected to have a ripple effect in the automobile industry, prompting car manufacturers to be more transparent about their data collection and utilisation practices.

In conclusion, the FTC's decision is a noteworthy move in the direction of data privacy and security for connected car users. It highlights the need for companies to be more transparent about their data practices and to obtain explicit consent from their customers before selling or sharing their data. It also sets a precedent for other industries where customer data is being collected and used, emphasizing the importance of privacy and data security.