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.

The Federal Trade Commission has taken action against General Motors and OnStar for allegedly sharing details about drivers to third parties without their consent. The agency launched an investigation into the automotive company after The New York Times found that GM had collected data about customers' vehicle use and sold it to third-party platforms used by insurance companies.

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.