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General Motors Under Fire for Secretly Spying on Drivers

 

In a developing story that has captured public attention, General Motors (GM) finds itself embroiled in controversy amidst accusations of clandestine surveillance and unauthorised data sharing with insurance companies. The unfolding narrative, spearheaded by investigative journalist Kashmir Hill of The New York Times, sheds light on a concerning pattern of behaviour within the automotive giant, raising significant questions about privacy and consumer rights.

What Are The Practices?

Hill's extensive investigation unveils a troubling narrative surrounding GM's alleged surreptitious enrollment of customers into its Smart Driver program. Despite the absence of explicit consent or enrollment in OnStar services, Hill and her husband were taken aback to discover that their driving data had been discreetly shared with insurers via third-party data brokers.

Lack of Transparency

Central to the controversy are instances implicating GM dealerships in the alleged scheme, with allegations suggesting customers were unwittingly enrolled in data-sharing initiatives during vehicle purchases. The pressure purportedly exerted on dealerships by GM to achieve high enrollment rates in connected services adds a layer of complexity to the narrative.

Legal and Ethical Implications

The emergence of federal lawsuits against GM underscores the legal and ethical consequences of its data collection practices. Amidst accusations of non-disclosure and lack of transparency, concerns have been raised about the company's adherence to regulatory standards and commitments to consumer privacy.

Corporate Response and Accountability

In response to mounting scrutiny, GM has announced the discontinuation of its Smart Driver program and pledged to unenroll all affected customers. Additionally, the cessation of data sharing with third-party brokers signals a proactive effort to address concerns and restore trust among consumers.

Calls for Reform and Regulatory Oversight

The controversy surrounding GM's data collection practices serves as a catalyst for broader discussions on consumer privacy rights and corporate accountability. Industry experts and consumer advocacy groups have called for strengthened regulatory oversight and transparency measures to safeguard against similar instances of covert data collection in the future.

As the narrative continues to unfold, the General Motors saga stresses the inherent tensions between technological innovation, consumer privacy, and corporate responsibility. The fallout from these revelations serves as a telling reminder of the critical importance of transparency, accountability, and ethical conduct in the digital age.


General Motors Ceases Sharing Driver Behavior Data with Data Brokers

 


General Motors announced on Friday that it ceased sharing information on driving habits of its customers with two data brokers involved in creating risk assessments for insurance companies.

This decision came in response to a recent report by The New York Times revealing that General Motors had been sharing data on mileage, braking, acceleration, and speed of drivers with the insurance industry for several years. These data were collected through the OnStar Smart Driver feature in General Motors' internet-connected cars, often without the drivers' knowledge. This feature gathered driving data and offered feedback and digital rewards for safe driving.

Some drivers reported that their insurance premiums increased due to the shared data, which General Motors provided to two brokers, LexisNexis Risk Solutions and Verisk, who then sold it to insurance firms.

A spokesperson for General Motors, Malorie Lucich, stated via email that since Wednesday, they have halted the sharing of OnStar Smart Driver customer data with LexisNexis or Verisk. Lucich emphasized the company's commitment to customer trust and stated that they are actively reviewing their privacy procedures and policies.

In response to the situation, Romeo Chicco from Florida, whose insurance rates nearly doubled after his Cadillac's driving data was collected, filed a complaint seeking class-action status against General Motors, OnStar, and LexisNexis.

An internal document, examined by The New York Times, indicated that as of 2022, over eight million vehicles were enrolled in the Smart Driver program. A company insider revealed that the program's annual revenue was in the low millions of dollars.

US Authority Investigates Pedestrian Threats at GM's Self-Driving Unit Cruise

 

U.S. auto safety regulators have launched an investigation into whether Cruise, a self-driving car from General Motors (GM.N), is using its autonomous robotaxis to protect pedestrians enough. 

The National Highway Traffic Safety Administration (NHTSA) stated that it has received two reports from Cruise regarding incidents involving injuries to pedestrians and has found two additional incidents via online footage.

The NHTSA stated that reports indicate that Cruise cars are "encroaching on pedestrians present in or entering roadways, including pedestrian crosswalks, in the proximity of the intended travel path of the vehicles," and that the issue "could increase the risk of a collision with a pedestrian, which may result in severe injury or death." 

A pedestrian was hit by a hit-and-run motorist on October 2 in San Francisco. After being flung into an adjacent lane, the pedestrian was struck again by a Cruise robotaxi, which was unable to stop in time and temporarily detained the pedestrian. 

The preliminary inquiry, which includes approximately 594 Cruise vehicles, is the first step before the agency may seek to order a recall. 

GM spends roughly $2 billion every year on Cruise, but the company says it represents a "giant growth opportunity." GM CEO Mary Barra reaffirmed in June that Cruise could produce $50 billion in annual sales by 2030. 

According to a representative for Cruise, the firm "has consistently cooperated with each of NHTSA's requests for information" and is in constant communication with the agency. 

The NHTSA launched a separate safety investigation of the Cruise cars' autonomous driving technology in December of last year in response to allegations of two injuries sustained in rear-end collisions. According to NHTSA, cruise cars "may engage in inappropriately hard braking or become immobilised." 

The California Department of Motor Vehicles (DMV) announced in August that it was looking into Cruise-related accidents in San Francisco following a collision involving a Cruise robotaxi and an emergency vehicle. Cruise obliged the DMV's order to remove half of the company's robotaxis from service. 

Cruise filed a petition in February 2022 asking for authorization to use up to 2,500 autonomous cars per year that are devoid of human controls like steering wheels. After announcing in July that it will make a decision "in the coming weeks," NHTSA stated on Tuesday that the petition is still being reviewed.

Despite significant backlash from local authorities and people, the California Public Utilities Commission voted in August to approve robotaxis from Cruise and Alphabet's (GOOGL.O) Waymo to drive around the clock.