GM - Are They Violating Consumer Privacy Via OnStar?

May 23
14:32

2024

Taylor Black

Taylor Black

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General Motors' recent changes to OnStar's Terms and Conditions have sparked concerns about consumer privacy. The new policy allows GM to monitor driving habits and vehicle locations even when OnStar is turned off, raising significant privacy issues.

Summary

General Motors' updated OnStar Terms and Conditions have raised privacy concerns as they allow the company to track driving habits and vehicle locations even when the service is deactivated. This data collection,GM - Are They Violating Consumer Privacy Via OnStar? Articles which can be sold to third parties, poses potential risks such as unauthorized surveillance by law enforcement, financial institutions, and insurance companies. GM defends the policy, citing benefits like severe weather alerts and recall notifications, but consumers can opt out by requesting the disconnection of the two-way link.

The New Terms and Conditions: A Closer Look

Under the revised Terms and Conditions, General Motors (GM) has started to collect data on driving habits and vehicle locations at their discretion. This data collection occurs regardless of whether the driver requires assistance and continues even if the OnStar service is deactivated. The information gathered can be sold to interested third parties, raising significant privacy concerns.

Potential Implications

The implications of this policy are far-reaching:

  • Law Enforcement: Police departments could potentially track vehicle speeds and issue tickets without direct observation.
  • Financial Institutions: Banks might disable vehicles remotely for late payments.
  • Insurance Companies: Insurers could monitor driving habits without the driver's knowledge, potentially affecting premiums.

The only surefire way to prevent this data collection is to disconnect or remove the car's data connection entirely.

GM's Perspective

Joanne Finnorn, Vice President of Subscriber Services at GM, offers a defense of the new policy. She states, "Under our new Terms and Conditions, when a customer cancels service, we have informed customers that OnStar will maintain a two-way connection to their vehicle unless they ask us not to do so. In the future, this connection may provide us with the capability to alert vehicle occupants about severe weather conditions such as tornado warnings or mandatory evacuations. Another benefit for keeping this connection 'open' could be to provide vehicle owners with any updated warranty data or recall issues. Of course, if the customer requests us to turn off the two-way connection, we will do as we have always done, and that is honor customers' requests."

Privacy Concerns and Consumer Rights

The new policy has raised significant privacy concerns among consumers and privacy advocates. The ability of GM to collect and potentially sell data without explicit consent is troubling. According to a Pew Research Center study, 81% of Americans feel they have little control over the data companies collect about them.

Opting Out

Consumers can opt out of this data collection by requesting GM to disable the two-way connection. However, this process is not widely advertised, and many consumers may be unaware of their rights.

The Bigger Picture: Data Privacy in the Automotive Industry

GM is not alone in facing scrutiny over data privacy. The automotive industry as a whole is increasingly reliant on data collection for various services. According to a McKinsey report, the market for car data could be worth up to $750 billion by 2030. This potential for profit drives companies to collect as much data as possible, often at the expense of consumer privacy.

Interesting Stats

  • Data Collection: A modern car can generate up to 25 gigabytes of data per hour, according to Intel.
  • Consumer Awareness: Only 20% of consumers are aware of the extent of data collection by their vehicles, as per a J.D. Power survey.

Conclusion

The changes to OnStar's Terms and Conditions by GM have significant implications for consumer privacy. While GM argues that the data collection can provide benefits such as severe weather alerts and recall notifications, the potential for misuse and unauthorized surveillance is a serious concern. Consumers must be aware of their rights and take action if they wish to opt out of this data collection.

For more information on consumer privacy and data collection, visit the Electronic Frontier Foundation.

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