From Pymnts · PYMNTS · · 1m 20s
GM's $220M Privacy Settlement Highlights Data Costs
GM's $220 million privacy settlement shows connected manufacturing data's hidden costs.
In brief
GM's $220 million privacy settlement shows connected manufacturing data's hidden costs. GM's $220 million settlement with 36 state jurisdictions reveals how connected product data can become a costly liability after privacy risks emerge. Originally reported by Pymnts.
Connected Product Data Value
Connected vehicles and industrial equipment generate continuous streams of behavioral, operational and location data that support subscription services and predictive maintenance.
GM's $220M Privacy Settlement
General Motors agreed to pay $220 million to settle allegations from 36 state-level jurisdictions that it improperly shared drivers' behavioral and location information with data brokers.
Ford's Privacy Promise
Ford Motor Company introduced a new company Privacy Promise pledging not to sell customers' driving-behavior data to brokers and providing clearer information about how vehicle data is collected, used and controlled.
Data Liability Risks
Connected product data can generate recurring revenue but downstream sharing, regulatory exposure and consumer backlash can turn a lucrative asset into a costly liability.
Privacy Settlement Impact
The controversy centers on driving information collected through GM's Smart Driver program and shared with data brokers including companies that supplied information to insurers.
CFOs' New Challenge
For CFOs, the most important question may no longer be how much customer data their products generate but how much economic value the business can retain without surrendering control of what happens to that data…
Here's the gist
GM's $220 million settlement with 36 state jurisdictions reveals how connected product data can become a costly liability after privacy risks emerge.
