GM touts OnStar as a service that will help consumers during an emergency and provide hands-free voice assistance and real-time traffic and navigation. The FTC says that over time, the company has increased the amount of data it collects through OnStar to include precise geolocation data- which is collected every three seconds for some users.

GM and OnStar are facing intense scrutiny over data collection practices, with more than two dozen new lawsuits filed over the issue since March of last year.

U.S. regulators took aim at General Motors and its OnStar unit late Thursday, saying that they had taken their first-ever action related to connected-vehicle data.

The FTC has announced a new proposal that accuses GM and its OnStar subsidiary of improperly collecting and sharing sensitive consumer data with third parties.

The Federal Trade Commission (FTC) has announced action against General Motors (GM) and its subsidiary, OnStar, for unlawful collection and sale of drivers' precise geolocation and driving behavior data without first obtaining their consent.

General Motors (GM) reached a settlement agreement with the Federal Trade Commission (FTC) which bans the company from disclosing consumers’ sensitive geolocation and driver behavior data to

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

General Motors – once a trusted symbol of American innovation – was outed last year for secretly collecting and selling drivers' detailed driving information without their consent, with its OnStar Smart Driver technology.

The FTC alleges that GM and its OnStar subsidiary collected data from millions of vehicles without adequately notifying drivers.

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.

General Motors got caught selling OnStar customer data without the knowledge or permission of the vehicle owners. A lawsuit from the Attorney General of Texas caught the attention of the Federal Trade Commission and cast a spotlight on the behavior of selling comprehensive surveillance data from the Silverado and other vehicles.

“GM monitored and sold people’s precise geolocation data and driver behavior information, sometimes as often as every three seconds,” FTC Chair Lina Khan said in a statement. “With this action, the FTC is safeguarding Americans’ privacy and protecting people from unchecked surveillance.”