In a proposed settlement, GM, GM Holdings, and OnStar would face a five-year ban on sharing sensitive driver data with consumer reporting agencies and must adopt measures to ensure greater transparency and control for consumers regarding their connected vehicle data.

GM sold precise driver data collected through OnStar and a discontinued feature called Smart Driver. The information could have hiked insurance rates.

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.