Senators Call for Investigation Into OnStar Privacy Abuse
New Service Agreement May Illegally Transmit Customer Driving Information
by Branford Lyles on September 29, 2011
The Federal Trade Commission has been asked to investigate OnStar over provisions in its new service agreement, which may conflict with consumer privacy rights. Under the new agreement, OnStar technology in cars may transmit driving information to the company, even if the driver has cancelled their subscription.
Senator Charles Schumer, a Democrat from New York, sent a letter to the FTC calling for an investigation. According to Schumer, “By tracking drivers even after they’ve cancelled their service, OnStar is attempting one of the most brazen invasions of privacy in recent memory.”
OnStar, a General Motors subsidiary which provides real-time driving help like directions and emergency services, issued its new terms via email to its 6 million subscribers. The new agreement allows OnStar to record and sell information taken from GPS technology and other data. Driver identities would not be released, but data on where they were driving, how fast they were going, and even if they used a seatbelt, could be.
This information will be transmitted via a connection between the OnStar onboard software and the company. While customers may elect to opt out of this connection, simply cancelling their service does not stop the transmission of the data.
In a letter sent to OnStar, Schumer wrote, “Your recent announcement that you would continue, by default, to collect data on subscribers who had terminated their service and that you retained the right to distribute that data to third parties is a violation of the trust your customers put in you. More troubling, it is a violation of which many may not be aware; a reasonable consumer would assume that when they terminate a service, they will no longer be monitored by the service provider.”
Other senators have begun to support Schumer’s cause. Senators Al Franken and Christopher Coons expressed similar feelings in their own letter to OnStar.
According to OnStar, the connection is kept in place even after a subscription runs out in order to allow for easy renewal. The connection also allows OnStar to continue relaying information to drivers for free. This may include updates about severe weather warnings in the area, evacuations, and also recall information. According to GM, compiling information helps the company with “future product development.”
The company says that all consumer data will be anonymous, making it impossible to trace to any one individual. However, Schumer concerns expressed over this as well, mentioning in his letter hackers were able to trace other types of “anonymized” information in the past.
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