Privacy enforcement action where the FTC settled with General Motors and OnStar for collecting and selling consumers' geolocation and driving behavior data without adequate notice or consent. The order prohibits sharing data with consumer reporting agencies and requires transparency and consumer choice measures.
GM is banned from disclosing consumers' geolocation and driver behavior data to consumer reporting agencies for five years. For 20 years, GM must obtain affirmative consent before collecting or sharing connected vehicle data, provide data access and deletion options, allow disabling geolocation collection, and offer opt-out capabilities with limited exceptions.
In-house legal teams should review customer-facing agreements (e.g., vehicle purchase/lease agreements, OnStar subscription terms) and vendor/data sharing agreements to ensure they contain clear, unambiguous clauses regarding the collection, use, and sale of sensitive geolocation and driving behavior data. Specific clauses to scrutinize include those governing consumer consent (requiring affirmative, not implied, consent), third-party data sharing (especially prohibitions on sharing with consumer reporting agencies), data transparency obligations (disclosing what data is collected and for what purposes), and consumer choice mechanisms (opt-out rights). Agreements may need amendments to explicitly list geolocation and driver behavior data as sensitive, mandate separate consent for their sale, restrict sharing with consumer reporting agencies, and provide layered, conspicuous privacy notices.
Entity
General Motors LLC, General Motors Holdings LLC, and OnStar, LLC
Also known as: General Motors
Industry
AutomotiveOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/01/ftc-finalizes-order-settling-allegations-gm-onstar-collected-sold-geolocation-data-without-consumers
GMAdminOrderDec2025
https://www.ftc.gov/system/files/ftc_gov/pdf/GMAdminOrderDec2025.pdf
ftc takes action against general motors sharing drivers prec
https://www.ftc.gov/news-events/news/press-releases/2025/01/ftc-takes-action-against-general-motors-sharing-drivers-precise-location-driving-behavior-data
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"General Motors LLC, General Motors Holdings LLC, and OnStar, LLC (collectively GM)"
"collected, used, and sold consumers’ precise geolocation data and driving behavior data from millions of vehicles without adequately notifying consumers and obtaining their affirmative consent."
The FTC sent warning letters to 12 companies offering 'nudify' tools that generate nonconsensual intimate images, for failing to comply with the TAKE IT DOWN Act (TIDA) by not providing a mechanism for victims to request removal of such content. The letters urge immediate compliance with TIDA, which requires platforms to remove nonconsensual intimate images within 48 hours of a valid request. Noncompliant companies may face future legal action and civil penalties of up to $53,088 per violation.
The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.
$6.5M
A federal court held Cliq Inc. and its executives Andrew Phillips and John Blaugrund in civil contempt for multiple violations of a 2015 FTC order requiring the payment processor to prevent enabling consumer fraud. The court found the defendants facilitated fraud by processing transactions for high-risk merchants, avoiding fraud monitoring, failing to conduct required underwriting, and ignoring chargeback thresholds. The court imposed $6.5 million in civil contempt sanctions against the defendants.
$795.8M
The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.
The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.
Federal Trade Commission Chairman Andrew N. Ferguson sent letters to over a dozen major technology companies reminding them of their obligation to comply with the Take It Down Act (TIDA) by May 19, 2026. TIDA requires covered platforms to establish a process for victims, including children, to request removal of nonconsensual intimate images, with takedown of content and all identical copies required within 48 hours of a valid request. The FTC also issued supplemental guidance to help companies prepare for compliance and warned that it will monitor and enforce violations of the law.