The Federal Trade Commission (FTC) alleged General Motors (NYSE:GM) and its subsidiary OnStar over unauthorized sharing of driver data with third parties. The U.S. automaker has agreed to a five-year ban on such driver's data.

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.

U.S. automaker General Motors and its subsidiary OnStar agreed not to disclose sensitive vehicle geolocation and driver behavior data to consumer reporting agencies for five years, the U.S. Federal Trade Commission said on Thursday.