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.

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.

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 (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.

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.

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.

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

“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.”

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

General Motors reached an agreement to settle allegations that the automaker shared drivers’ locations and behavior data without their consent, the Federal Trade Commission said.