General Motors (OnStar)
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| Basic information | |
|---|---|
| Founded | 1908-09-16 |
| Legal Structure | Public |
| Industry | Automotive, Technology, Information Technology |
| Also known as | |
| Official website | https://www.gm.com |
General Motors (OnStar) is a multinational automotive manufacturing company and its subsidiary, OnStar, which provides in-vehicle security, emergency, and navigation services. This article assesses the company's consumer protection stance, with a primary focus on the accessibility of emergency 911 services for non-subscribers of the OnStar service.
Consumer-impact summary
Business model
- The company's business model for its OnStar service includes paywalling a critical emergency 'SOS' button, preventing non-subscribers from using it for its primary purpose of contacting emergency services.
Incidents
This is a list of all consumer-protection incidents this company is involved in. Any incidents not mentioned here can be found in the General Motors (OnStar) category.
Data monetization
In 2025, GM settled with the Federal Trade Commission (FTC) due to its misuse of the OnStar Smart Driver by collecting drivers' precise location every 3 seconds and driving data such as hard braking and quick acceleration then selling it without informed consent to consumer reporting agencies like LexisNexis and Verisk, which lead to insurance premium hikes or coverage denials.[1][2][3]
They deceived consumers by claiming that some safety features would only activate if OnStar was enabled during purchase. The consent mechanisms was buried in a 29-page ToS and obscured its data-sharing practices.[1][4][5]
Texas, Arkansas, and Nebraska sued GM for violating trade practices acts, citing lack of transparency and harm to consumers.[6][4][5] The FTC imposed a 5-year ban on sharing data with insurers and mandated explicit consent.[1][2][7]
Inaccessible Emergency 'SOS' Button (1996-Present)
This practice places a direct paywall on a critical, life-saving feature. The core of the issue rests on the classification of the OnStar system as a cellular communication device.[8] The Wireless Communications and Public Safety Act of 1999 (the "911 Act") mandates that mobile service providers must transmit all 911 calls to a public safety answering point, regardless of whether the caller has a subscription.[9] It has been argued that by preventing a direct connection to emergency services via its most prominent emergency button, OnStar's behavior for non-subscribers is inconsistent with the spirit of this federal law and the established public expectation for emergency communication devices.[10]
Products
- OnStar (1996): An in-vehicle telematics system. The primary consumer issue involves the paywalling of its dedicated emergency SOS button for non-subscribers.
See also
References
- ↑ 1.0 1.1 1.2 Chandler, Kelley (February 17, 2025). "General Motors Settles With the FTC Over Unauthorized Collection and Sale of Driver Data". JDSupra. Archived from the original on July 23, 2025.
- ↑ 2.0 2.1 Mather, Ciarán (January 17, 2025). "GM hit with data-sharing ban from FTC". SiliconRepublic. Archived from the original on February 11, 2025.
- ↑ Sisco, Josh; Nylen, Leah (January 17, 2025). "General Motors Settles With FTC Over Sharing Driver Data". Insurance Journal. Archived from the original on February 14, 2025.
- ↑ 4.0 4.1 "Attorney General Ken Paxton Sues General Motors for Unlawfully Collecting Drivers' Private Data and Selling It To Several Companies, Including Insurance Companies". Texas Attorney General. August 13, 2024. Archived from the original on July 26, 2025.
- ↑ 5.0 5.1 White, Emmet (July 9, 2025). "Nebraska Sues General Motors and OnStar Over Allegations of Data Harvesting and Sales". Road and Track. Archived from the original on August 15, 2025.
- ↑ Anderson, Hope; Rodman, Rachel; Naydonov, Anna (March 26, 2025). "Arkansas Attorney General Sues General Motors Over Alleged Deceptive Data Practices". White and Case. Archived from the original on May 13, 2025.
- ↑ Christie, Joel (January 30, 2025). "General Motors and OnStar, LLC; Analysis of Proposed Consent Order To Aid Public Comment". Federal Register. Archived from the original on July 24, 2025.
- ↑ MarcBerm (2025-04-19). "Can You Call 911 Without an OnStar Subscription? I Tested It!". YouTube.
{{cite web}}: CS1 maint: url-status (link)(Archived) - ↑ "S.800 - Wireless Communications and Public Safety Act of 1999". Congress.gov. 1999. Retrieved 2025-08-16.
{{cite web}}: CS1 maint: url-status (link)(Archived) - ↑ Lopez, Jonathan (2020-06-30). "OnStar Hands-Free Calling Will Be Sunset in 2022". GM Authority. Retrieved 2025-08-16.
{{cite web}}: CS1 maint: url-status (link)(Archived)