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GM stops sharing driver data with brokers amid backlash (arstechnica.com)
101 points by quantified on March 25, 2024 | hide | past | favorite | 73 comments



It's amazing how defeated we are as citizens and consumers. Ideally we wouldn't hear that GM is just walking this back, but that GM executives who cooked up this scheme were already indicted and facing serious federal prison time. Selling personally identifiable tracking information like this is akin to AT&T selling recordings of all your voice calls to the highest bidder.


More like, AT&T selling location and tower tracking data, linked to your identity and unique phone info, such as GSM Sim serial numbers and so on, which can be linked to your phone. And even if you use pay-as-you-go SIMs, if you use a credit card once, your real-world ID is linked to the phone.

And even selling services like alerts when such providers move out of a geo-located region, a person's domicile, and so on.

Of course, that'd never happen... right?

I agree that this -- all of this, needs to be defined as criminal activity. That once such laws are passed, boards of directors, and executives face jail time, should they breach such laws.

What we'll likely need, in the end, is a mandated CTO position, with responsibilities and duties akin to a CFO.


>What we'll likely need, in the end, is a mandated CTO position, with responsibilities and duties akin to a CFO.

Yeah, let's mandate a position where people are calling for your head (literally) when you make a stupid call. Who wants the job? Any takers?


If you don’t set high expectations and hold decisionmakers accountable to the consequences of their decisions, why would you expect the quality of their decisions to be high rather than merely expedient?

It sounds like the pay for that position should be high enough to compensate for the risk, and that the penalty for failure should be consequential enough that only people with the talent, skills, and judgment to be confident in their decisions would take the job.

The financial people have skin in the game in the form of this kind of personal legal liability, and that seems to keep the financial shenanigans mainly on the “obscure but within the letter of the law” side of the line no matter what kind of pressure the CEO might bring to bear to cook the books.

When security and technical governance are a cost center and compliance is optional (or, at worst, a potential PR threat)—and when privacy has no concrete value but data does—wouldn’t it be bad business not to monetize the data and be quiet about it so as to minimize the PR threat?


CISO is a well paid job for exactly that reason.


I found it interesting how your cellphone location data is sold with your implied consent.

Like if you are looking for roadside assistance.


Part of the issue is how we are conditioned by the ruling class to use benign words like "interesting" when we know more accurate words would convey passion, meaning, and actual anger towards those who want our data.


I used the word more tongue-in-cheek.

Not that I don't agree with your point about ambiguous use of words, or euphemisms to minimize or normalize bad behavior.

Words like "telemetry" or "advertising", which nowadays mean "conduct surveillance on someone and keep a detailed dossier"


If you allow there to be a ruling class in a democracy, is it still a democracy?


> If you allow there to be a ruling class in a democracy, is it still a democracy

Yes, democracy is about fracturing the elite and making its membership more porous. Not wand waving it away.


GDPR solves exactly this, they are legally not allowed to sell this data in EU without explicit consent from you describing who to sell it to.


Has there ever been a legal precedent of a company violating GDPR like this and had to pay substantial enough penalty in accordance to GDPR?


Biggest fine from last year was apparently $1.2 billion.


A fine is just a license fee to break the law. Shut down their business for X months/years, instead, require them to continue wages for their lower level employees and remove any management directly connected with the violation of privacy.

Unless we make the penalty extremely harsh, change will not happen in this instance. The selling of PID is far too profitable to be deterred by mere fine


In which world detached from reality is $1.2 billion not a harsh penalty? That's 10% of the GDP of say, the Bahamas..


Companies operate on money. To pretend a monetary fine can’t grow large enough to deter a behavior is silly.


GDPR fines grow to up to 4% of global revenue if a company keeps infringing on it, and they are applied over and over again if the behaviour doesn't stop. Taking a 4% global revenue fine is not something a company can do many times, it doesn't become just a cost of business, it has material impact.


4% is small. Why can't it be 100%? (i.e., the company is forfeit)

Sure, it'll have a "material impact" at only 4%, but a determined company could just do it anyway. This doesn't actually force them to stop.


4% of the global revenue is not 4% of profits. In a lot of sectors, this can actually destroy a company.

GM has 10B profits for 170B revenue so we are talking about 70% of their annual profit. Not enough to destroy the company but certainly not small for a single violation on a subset of their customers. For tech companies however, 4% is less threatening.

As I understand it, we are talking about 4% per country of the EU, which in many cases can destroy profits made in a country for years and can certainly wipe any profit made from selling that data.


> Sure, it'll have a "material impact" at only 4%, but a determined company could just do it anyway. This doesn't actually force them to stop.

Q1 the company is hit with a 4% fine of global revenue, let's say it's Meta with its US$134 billion of revenue, the fine is US$5.36 billion, they don't change course and Q2 gets hit with another 4%, then Q3, then Q4 ending the fiscal year with ~US$22 billion of fines, that's 56% of their net income, it's an absurd amount that no shareholder will be happy about. Let's say they continue even after that, major shareholders will be up in arms about how the fuck can management be allowing 56% of their global net income to go to the EU's budget through fines.

If it gets egregious enough and some company does think they can continue the infringement and bad behaviour the EU will just roll out another regulation to kneecap those companies even harder.

I agree with you that companies need to feel the heat to behave, if not then we just get the unethical/immoral branch of capitalism, at the same time the system right now is dominated by these elite capitalists which will fight tooth-and-nail to avoid any kind of punishment through legislation, get too harsh too quickly and we will see those we are trying to punish banding together to fight whole governments to push their agenda, they have the power to do it you just have to look at the USA to see how much mega corporations can bend a democratic government to their will.


I don't think Meta is a very good example here. The shareholders can be up in arms all they want, but they can't do anything about it, since Mark Z. can tell them to go pound sand. If he wants to drive his company straight into the ground, he has the legal ability to do that, since he owns a majority share.


revenue, not profit. 4% is really a lot when it comes to global (not just a single EU member state)


Same reason we don’t cut thieves’ hands


nor should we, because we can't yet regrow chopped off limbs. 100% is clearly excessive, but when the fine is simply money, which corporations can "regrow", then they're just the cost of doing business. Like speeding tickets are just fun tax for car enthusiasts, rather than an avidly deterrent, or how parking tickets are just the cost to pay to park somewhere you're not supposed to, instead of not parking there.

something more incentivizing than a mere fine wants to be levied upon corporations to get them to follow the law, rather than just saving up money to pay an expected fine.


My thought up reply got eaten by an unexpected refresh so here is a shorter version: boy, not complying with the regulations sure paid off for Apple and their Lightning cables huh?

Also speeding becomes reckless driving (with jail time) and parking in dumb places gets your car towed (and possibly damaged) so banking in money to avoid rules isn’t always exactly a winning strategy.


Ah. So non-monetary fines, getting jailed, and getting towed, are additional incentives to not to the behavior? So fines aren't sufficient to disincentivze a behavior? Hmm.


I replied to a post that advocated basically death penalty for firms that such penalties are inhumane. I can’t really put my finger at what you’re insinuating my position is and how you arrived there.

But, putting on my economist hat; I can assure you that exponentially increasing fines will at some point create enough deterrence against such actions. Or better yet, it will be socially optimal for those idiots to keep breaking rules.


yes --> GDPR enforcement tracker, see https://news.ycombinator.com/item?id=39813801


Wouldn't this be covered by some innocent looking paragraph hidden in the middle of the contract when buying the car?


> innocent looking paragraph hidden in the middle of the contract

This is the source of the problem and requires legislation to fix. Starting with clickwrap.


Facebook tried to pull something similar, and it was eventually ruled illegal: https://noyb.eu/en/noyb-win-personalized-ads-facebook-instag...


God I love noyb. I wish I lived in Austria so I could contribute.


it won't stand in regards to GDPR. GDPR consent has to be freely given (and taken at any time), can't use legal lingo either.


legal consent in GDPR needs to be understandable, can not be hidden in any way, and easy to remove.

The common lawyer's hack of hiding it in a big long unreadable contract won't cut it, and should lead to fines.

Everybody talks crap about the GDPR, but as someone who, while not a lawyer, has worked on technical laws and standardization, I gotta say they really did a great job on not letting any companies have an easy out.


gotta agree, it's a very approachable piece of regulation for a non-lawyer.


The GPDR doesn't solve exactly this, because GM is an American company selling American drivers' data to other American companies. The GPDR is irrelevant here.


I think the point being made was that if the US had a similar version of GPDR, then GM’s activity would have fallen foul of the act.


That hypothetical wouldn't be the GPDR, and also, it doesn't exist. There is no US GPDR for a reason.


No one from the EU has ever visited the USA and driven a GM car which then had the data harvested?


That wouldn't apply. But if you bought a GM car while in the U.S and imported it to Europe GM better have thought of that eventuality.


>but that GM executives who cooked up this scheme were already indicted and facing serious federal prison time.

This is not remotely close to having your personal phone calls recorded and sold. Not even close.

Guess what? Your terrible driving habits put me and my family at risk, so I'm not up in arms if your insurance company knows about it when you aren't pretending to drive safely in front of a police officer. If you continuously break laws and can't afford insurance, everyone wins (but you).

Did GM overstep? Probably. People complained and it's rectified. The idea that you want to throw executives in prison for a long time for this is beyond absurd.


My insurance company knowing how aggressively I drive, vs someone knowing exactly where I am, is an important distinction to make. Knowing that I'm doing 110 and weaving in and out of traffic and putting you at risk is one thing. knowing that I don't do that and am driving safely but knowing which 7-11 I'm parked out in front of, is not.

Jail time for executives is how to incentivize corporations to behave a certain way beyond leveling fines. Look how quickly Craigslist closed their personals ads after FOSTA was passed. I don't agree with FOSTA, and think it does more harm than good, but jail time for executives is not absurd. I don't want people I don't know tracking my exact location, it's as simple as that.


"We're sorry we got caught" in all its beauty. But I wish other companies, especially telcos, would be a little more bothered by this.


I wish we developers would be more bothered by this. Because we made it possible by implementing the interfaces and data transfers.


If your CTO will say: next quarter we will start to record and sell user's data. Will you start working on the implementation or sign the resignation letter?


Resignation. That's not even a hard call.


That is great you have such a luxury. Many people cannot afford to resign and look for another job. For some resignation means to leave the country.


You asked what I would do, and I answered. Other people will have other answers based on their own situations, of course. I truly pity anyone who feels compelled to stay in a job where they have to contribute to the abuse of others.

I will say, though, that it's not a matter of luxury. I have left jobs on principle when leaving them meant I suffered financial hardship.


The vast majority of us have never worked for GM or LexisNexis.


If they gave me the pay, the options, the benefits the "we developers" round here expect these days I would happily harvest anything they asked from their customers.


Maybe, but project dragonfly didn’t get known to the public because those employees were underpaid.


This is the same company that knew of a faulty ignition key system and chose to sit on it because it was too expensive to recall right?

Seems like their way of business.


I guess Fight Club was not far off the mark..

https://www.youtube.com/watch?v=IA2EBWFCULg


I poked around and found this [1] guide to terminating the OnStar antenna. It’s great because it is non destructive and easily reversible. I ordered the $7 of parts and made the modification yesterday ironically. No more watching

[1] https://imgur.com/gallery/n00QKnH


The headline continues to be overstated.

GM didn't announce it was stopping the sale of driver data, only that it would no longer sell to the 2 data brokers implicated in passing the data on to insurance firms:

“OnStar Smart Driver customer data is no longer being shared with LexisNexis or Verisk,” a G.M. spokeswoman, Malorie Lucich, said


"customer trust is a priority to us"

Really? Well then someone is super crazy incompetent. You fired them already right? Whoever decided to do this in the first place, they're shitcanned for doing something so diametrically opposed to the companys priorities right?


This seems like it will be part of the investigative journalism of the future.

Interviewing the people who implemented the gross feature to say who the product managers and VPs were that handed down the ticket.


Reminds me of cookie banners. "Your privacy is important to us!" and then they present you with a dialog that nudges you to consent to sharing your data with hundreds of companies.


Never trust anyone who says "trust me".


it's a priority, a really low priority but still prioritized.


I’ve had a gm car with onstar- can who can I contact to see if my data was shared. And can I join to class action?


You request your information from LexisNexis at https://consumer.risk.lexisnexis.com/ to find out.


Independent of the data privacy question, I think it is good to make unsafe drivers pay more for insurance. Safe drivers should not have to subsidise their insurance.


You're assuming these monitoring devices are actually capable of observing the quality of your driving while being cognisant of the particular conditions of the road at the time you made a decision to do something it algorithmically deemed "unsafe".

For a while I used an insurance company in South Africa which rewarded "good" driving, you'd need an app installed on your phone which would use Bluetooth to communicate with a little device you'd put on your windscreen.

They were very clear that the monitored results would never be used to affect your premiums or used in the event of an accident, however, if you drove "badly" then you'd get less rewards. One of the rewards options was cashback on money you spent on fuel (from particular partners), the percentage being more or less depending on how "well" you drove.

Something it used to rate your driving was accelerometer readings which would be used to identify possible "harsh" cornering, acceleration or deceleration.

However, the thresholds chosen were clearly not very scientific as often I would get penalized for "harsh" breaking at amber lights where my only other option would have been to go through an intersection just after the light changed to red. Worrying about how much cashback you'll lose for stopping at a red light is not something that encourages "safer" driving.

Aside from harsh breaking, I managed to avoid all other penalizing behaviours, namely: speeding, "harsh" cornering (as I would have to take corners quite slowly, this was likely somewhat annoying to other drivers), not using my phone while driving and generally not driving at late hours.

I landed up changing my insurance company for other reasons, but I don't miss having to factor in "rewards" penalties in my driving decisions on top of trying to be as safe as possible.


> it is good to make unsafe drivers pay more for insurance. Safe drivers should not have to subsidise their insurance

And you know what, that’s a fair deal. If I had strong privacy protections, e.g. open-source code that homomorphically encrypts my driving data and guarantees it’s being used to update a model and then deleted, I’d sign up.

But the offer has to be clear and opt in. And I don’t want to be in a situation where someone borrows my car and I start getting letters about why they visited an abortion clinic in such and such state.


>And I don’t want to be in a situation where someone borrows my car and I start getting letters about why they visited an abortion clinic in such and such state.

How is it any different than someone standing outside the abortion clinic and observing who is parked and who goes in and out of the clinic?


> How is it any different than someone standing outside the abortion clinic and observing who is parked and who goes in and out of the clinic?

Because that person, presumably a law-enforcement officer, is visible and physically in one place. Also, I am describing a hypothetical where a woman in a state where abortion is banned travels out of state to get the procedure. That’s simply not something one can police with traditional tools.


It doesn’t scale well. The insurance company would have to hire an entire army of PIs to snoop around that and every other venue that suggests risk-seeking behavior. It probably wouldn’t pay off.


> I start getting letters about why they visited an abortion clinic in such and such state.

Sounds fair enough to me if premiums are going to be tied to driver behavior. Either opt out or don’t lend your car to those procuring abortions.


Though, that's not really what GM says.


Don't like that such sensitive data would be transiting through private for-profit entities

But there should definitely be a reevaluation of our expectations when it comes to licensed vehicles keeping their owners dirty secrets.

1) You are driving on a public road

2) The vehicle requires a permit

3) The road has traffic codes

4) You've decided to forego traffic codes.

It's come to be expected that your car wouldn't rat on you because we had technology limitations. Should it be expected still? I don't think so...

Maybe fuck the privacy of drivers and maybe cars should be expected to rat about their owners if they are to be allowed on public roads?

There can be privacy on vehicles that don't require a license


Braking hard to avoid an animal, another car swerving into your path, or a sneaky-short yellow light are not "dirty secrets" or foregoing traffic codes.

Accelerating, stopping hard? It totally depends on conditions.

We're no more or less safe than we were before monitoring. And this is unagreed-to monitoring, via hidden channels. Let drivers in police states experience this first.


It depends on conditions. You can think of various ways to gather more of them as cars get fancier, and other ways to part exceptions from a habit of bad driving to make sure that any case reported to a human isn't a waste of their time.

Then for what goes through you've got a system to challenge fines already - something completely mandatory in such a system and which can only be achieved in a powerful democratic state




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