Today, Senator Charles Schumer (D-NY) sent letters to Federal Trade Commission chairman Jon Liebowitz and OnStar executive director Linda Marshall regarding recent controversial changes to OnStar’s privacy policies.  OnStar provides in-vehicle GPS navigation, emergency response, and concierge services for millions of U.S.-manufactured vehicles.  In providing these services, OnStar collects data regarding customers’ location, speed, driving habits, odometer mileage, and other personal information.  Prior to the changes announced last week, OnStar ceased collecting information about a customer if the customer decided to cancel his or her service.  It has been reported that, going forward, OnStar plans to continue to collect location and speed information about a customer even if the customer cancels the service, unless the customer specifically and explicitly instructs OnStar to no longer collect information. 

Senator Schumer’s letter to the FTC calls for an investigation into whether OnStar’s privacy practices constitute an unfair trade practice under section 5 of the Federal Trade Commission Act.  His letter to OnStar asks the company to reverse the changes to its privacy practices.

UPDATE (Sept. 27, 2011): OnStar reversed the changes to its privacy practices and will now only collect information from a former customer if the customer opts in.

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Photo of Mike Nonaka Mike Nonaka

Michael Nonaka is co-chair of the Financial Services Group and advises banks, financial services providers, fintech companies, and commercial companies on a broad range of compliance, enforcement, transactional, and legislative matters.

He specializes in providing advice relating to federal and state licensing and…

Michael Nonaka is co-chair of the Financial Services Group and advises banks, financial services providers, fintech companies, and commercial companies on a broad range of compliance, enforcement, transactional, and legislative matters.

He specializes in providing advice relating to federal and state licensing and applications matters for banks and other financial institutions, the development of partnerships and platforms to provide innovative financial products and services, and a broad range of compliance areas such as anti-money laundering, financial privacy, cybersecurity, and consumer protection. He also works closely with banks and their directors and senior leadership teams on sensitive supervisory and strategic matters.

Mike plays an active role in the firm’s Fintech Initiative and works with a number of banks, lending companies, money transmitters, payments firms, technology companies, and service providers on innovative technologies such as bitcoin and other cryptocurrencies, blockchain, big data, cloud computing, same day payments, and online lending. He has assisted numerous banks and fintech companies with the launch of innovative deposit and loan products, technology services, and cryptocurrency-related products and services.

Mike has advised a number of clients on compliance with TILA, ECOA, TISA, HMDA, FCRA, EFTA, GLBA, FDCPA, CRA, BSA, USA PATRIOT Act, FTC Act, Reg. K, Reg. O, Reg. W, Reg. Y, state money transmitter laws, state licensed lender laws, state unclaimed property laws, state prepaid access laws, and other federal and state laws and regulations.