This action marks the FTC’s first case involving connected vehicle data.

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 says consumers didn’t know that General Motors was collecting data about their driving through its OnStar system, let alone that they were selling it. Now, an order from the federal government is forcing them to stop.

General Motors and subsidiary OnStar will be banned for five years from sharing drivers' precise geolocation and driving behavior data with consumer reporting agencies, under a settlement with the US Federal Trade Commission, the FTC said in a release Thursday.

The FTC has reached a proposed settlement with GM, prohibiting the automaker from sharing customer geolocation and driving behavior data.

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

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.

General Motors will be banned for five years from disclosing data that it collects from drivers to consumer reporting agencies as part of a settlement with the government to resolve claims that the automaker shared such data without consumers’ permission.

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

Through a newly proposed order, GM and OnStar will be banned from disclosing data for five years from the date the order is entered. The companies must also obtain affirmative express consent from consumers before collecting connected vehicle data, except in some cases, such as providing location data to emergency first responders.

GM is one of many car manufacturers to come under fire for collecting and selling sensitive driving data in the US over the past year. In August, Texas Attorney General Ken Paxton