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.

The US Federal Trade Commission has reached a settlement with General Motors Co. over claims the automaker deceived drivers by collecting their personal data and sharing it with third parties.

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 Federal Trade Commission has taken action against General Motors and OnStar for selling location and driving data from

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

General Motors and subsidiary OnStar will be banned for five years from sharing drivers' precise geolocation and driving behavior data with consumer reporting agencies, under a settlement with the US Federal Trade Commission, the FTC said in a release Thursday.

“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.”

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.

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.

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.