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Hello. A big trove of data not only makes a ripe target for hackers. It also draws scrutiny from regulators.
General Motors settled a case with the Federal Trade Commission over collecting and selling data vacuumed up through its OnStar connected-car system without driver permission.
OnStar, the FTC said, harvested data points every three seconds, including driver habits and which radio station was playing, and can pinpoint locations to within 4.5 inches. GM sold the data to brokers such as Lexis Nexis Risk Services, which then shared it with insurance companies and others. Drivers were surprised when their premiums were raised or policies canceled, the FTC said.
GM wasn't fined but the settlement says it must stop these practices for five years and if it resumes collection, the company has to get driver permission, take only minimum data for certain purposes and store it for a defined period of time. GM also has to delete within six months all the data it previously collected in violation of privacy regulations—a big job in itself.
The deal restricts GM in lots of other ways for the next 20 years. Read the original complaint and the settlement.
More news below.
Note: The WSJ Pro Cybersecurity newsletter will be off Monday in observance of Martin Luther King Jr. Day. We’ll be back Tuesday.
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