Under a recent change in policy, OnStar which is owned by GM continues to connect to your vehicle and collect information about it even after you have cancelled your account. This change of policy goes into effect Dec 1. This information includes speed, location, odometer reading and seatbelt usage. Information that could be used by both law enforcement and insurance companies among others to both the aid and detriment of the consumer. OnStar stated they reserve the right to share this information with interested third parties, including law enforcement, although they do not do so at this time. OnStar stated that this allows them to communicate to the cars occupants about severe weather, emergency evacuation, and recalls. OnStar also insist that this information is clearly stated in the Terms of Service (TOS) and customers should be aware of it. It is unclear however, whether this is something that OnStar informs the customer when they cancel their service or is it something that the customer has to bring up. This is clearly an opt out service and not an opt in service. Let’s assume that consumers read the TOS when they first get the service and are aware they have to deactivate the data connection when they cancel service to stop OnStar from collecting data. Are they really going to remember this when they actually cancel service, I doubt it and I bet OnStar is betting on this. This change of policy has raise the ire of several Senators including Senator Schumer (NY), Al Franken (MN) and Christopher Coons (DE). They have all called upon Onstar to change it’s policy, Senator Schumer has also requested the FTC to launch and investigation.
First I am presently not a user of OnStar, none of the cars I own have it installed. A few rental cars I used in the past have had it installed. So I have never had to cancel the service. However when I cancel service with a business this means to me and I think most consumer, that my contract and connection to that business has been totally severed. It doesn’t mean the business can continue to collect information about me and that’s alright because it’s for my safety. Why OnStar thought that consumers would be ok with this is beyond me, or perhaps more likely they thought no one would notice. The second question is why OnStar is collecting this information in the first place, if not to sell it. With over 6 million willing customers from which they can collect information from, do they really need to collect information from ex-customers. Finally what prompted the change in policy and did anyone at OnStar say wait this might be a bad idea.