# Automakers Selling Your Car Data Sparks FTC Action

- Topic: tech
- Source: [The Verge](https://www.theverge.com/column/994172/your-car-is-selling-your-data)
- Published: 2026-09-13
- Original: https://www.theverge.com/column/994172/your-car-is-selling-your-data
- Language: en
- Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/gettyimages-144097019.jpg?quality=90&strip=all&crop=0,0,100,100

## At a glance

- FTC bans GM from selling driver data for five years after NYT investigation linked data to higher insurance rates
- GM’s OnStar Smart Driver feature automatically collected speeding and night‑driving data, feeding it to LexisNexis and Verisk
- Mozilla study found all major automakers have “horrible privacy and security,” forcing consumers to accept overlapping data‑collection terms
- The proposed DRIVER Act would grant owners more data control but still permit automaker sales, a compromise rejected by privacy advocates

## Sources

- [The Verge](https://www.theverge.com/column/994172/your-car-is-selling-your-data)

## The story

The Federal Trade Commission recently imposed a five‑year ban on General Motors for selling customer driving data to third‑party brokers, a move that followed a New York Times investigation that linked the data to higher insurance premiums. GM had long collected detailed metrics such as speeding frequency and nighttime driving, feeding that information to LexisNexis and Verisk, which use it to build risk profiles for insurers. Many drivers were unaware of the data sharing because the Opt‑in process for OnStar’s Smart Driver feature was confusing and automatically enabled data collection when users signed up for connected services. A Mozilla Foundation study of major automakers’ privacy policies found that every company had “horrible privacy and security,” and that consumers were forced to accept overlapping terms for the vehicle, its app, and financing. Consumer Reports echoed these findings, concluding that almost every U.S. automaker collects and sells driver‑behavior data with little public scrutiny. In response, lawmakers have introduced the DRIVER Act, which would give owners more control over their data but still allow automakers to sell it, a compromise that privacy advocates reject. Meanwhile, former Transportation Secretary Sean Duffy has proposed a “Freedom Car” that would prohibit wireless data transmission, reflecting a push for simpler, disconnected vehicles. As the debate continues, consumers are demanding cars that do not collect excessive data, and it remains unclear whether new legislation will curb the industry’s data practices.

> Summary by Daily Read Bytes. [Read the original source](https://www.theverge.com/column/994172/your-car-is-selling-your-data)