General Motors and its subsidiary OnStar agreed to a settlement that prohibits them from sharing driver location and behavior data with third parties, the Federal Trade Commission announced yesterday.

The Federal Trade Commission alleges that GM and OnStar — GM’s subscription-based in-vehicle safety and security system — collected, used, and sold drivers’ precise geolocation data and driving behavior information from millions of vehicles without adequately notifying consumers and obtaining their consent.

The Federal Trade Commission has taken action against General Motors and OnStar for selling location and driving data from

General Motors – once a trusted symbol of American innovation – was outed last year for secretly collecting and selling drivers' detailed driving information without their consent, with its OnStar Smart Driver technology.

General Motors and its subsidiary OnStar are banned from selling customer geolocation and driving behavior data for five years, the Federal Trade Commission announced Thursday.

U.S. automaker General Motors and its subsidiary OnStar agreed not to disclose sensitive vehicle geolocation and driver behavior data to consumer reporting agencies for five years, the U.S. Federal Trade Commission said on Thursday.

“GM monitored and sold people’s precise geolocation data and driver behavior information, sometimes as often as every three seconds,” FTC Chair Lina Khan said in a statement. “With this action, the FTC is safeguarding Americans’ privacy and protecting people from unchecked surveillance.”

The automaker was accused of collecting drivers' behavior data without their knowledge and providing it to third-party agencies that set insurance rates.

The Federal Trade Commission has taken action against General Motors and OnStar for allegedly sharing details about drivers to third parties without their consent.