FTC bans General Motors from selling customer data for five years

The Federal Trade Commission has imposed a historic sanction on General Motors, prohibiting the automaker from selling customer data to consumer‑reporting agencies and third‑party data brokers for a period of five years. The ruling, announced earlier this year, marks the first time the agency has levied such a sweeping ban on a major vehicle manufacturer. Regulators cited GM’s long‑standing practice of gathering detailed telemetry—including metrics on speed, nighttime driving and other driving behaviors—and then monetizing that information through sales to external data brokers.

The penalty follows an extensive investigation that concluded GM’s data‑sharing practices violated consumer‑privacy protections and lacked adequate transparency. Under the new order, GM must cease all existing agreements that involve the transfer of driver‑specific information to third parties and implement stricter internal controls over data collection and use. The FTC’s action signals heightened scrutiny of how automotive firms handle the increasingly granular data generated by connected vehicles, and it may set a precedent for future enforcement across the industry.