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Reversing its earlier decision, OnStar has issued a press release confirming it will indeed alter its Terms and Conditions policy and "will not keep a data connection to customers' vehicles after the OnStar service is canceled." Says OnStar President Linda Marshall:

We realize that our proposed amendments did not satisfy our subscribers. This is why we are leaving the decision in our customers' hands. We listened, we responded and we hope to maintain the trust of our more than six million customers.

Further, OnStar promises that it may allow customers to opt-in to such a data-tracking system in the future but will only use data in ways the customer approves. In addition to "[providing] former customers with urgent information about natural disasters and recalls affecting their vehicles", we imagine that also may include selling the information to law enforcement agencies and insurance companies.

The move comes after OnStar came under fire for tracking certain data streams related to your driving such as speed and location, even if the owner canceled the service. Feel free to read the complete press release after the break.
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OnStar Reverses Decision to Change Terms and Conditions
Will continue to protect customer and vehicle data privacy


DETROIT – OnStar announced today it is reversing its proposed Terms and Conditions policy changes and will not keep a data connection to customers' vehicles after the OnStar service is canceled.

OnStar recently sent e-mails to customers telling them that effective Dec. 1, their service would change so that data from a customer vehicle would continue to be transmitted to OnStar after service was canceled – unless the customer asked for it to be shut off.

"We realize that our proposed amendments did not satisfy our subscribers," OnStar President Linda Marshall said. "This is why we are leaving the decision in our customers' hands. We listened, we responded and we hope to maintain the trust of our more than 6 million customers."

If OnStar ever offers the option of a data connection after cancellation, it would only be when a customer opted-in, Marshall said. And then OnStar would honor customers' preferences about how data from that connection is treated.

Maintaining the data connection would have allowed OnStar to provide former customers with urgent information about natural disasters and recalls affecting their vehicles even after canceling their service. It also would have helped in planning future services, Marshall said.

"We regret any confusion or concern we may have caused," Marshall said.

About OnStar

OnStar, a wholly owned subsidiary of General Motors, is the leading provider of connected safety and security solutions, value-added mobility services and advanced information technology. Currently available on more than 40 MY 2011 GM models, OnStar soon will be available for installation on most other vehicles already on the road through local electronics retailers, including Best Buy. The OnStar Mobile App is a recipient of the 2011 Edison Award for Best New Product in the Remote Driving Aids segment and OnStar Stolen Vehicle Slowdown is a recipient of the 2010 Edison Award for Best New Product in the Technology segment. OnStar safely connects its more than 6 million subscribers, in the U.S., Canada and China, in ways never thought possible. More information about OnStar can be found at www.onstar.com.