New York Senator Demands Reversal of OnStar’s Tracking Policy, Calls for FTC Probe. Update: OnStar Agrees.

New OnStar LogoIn a press release on September 26, 2011 U.S. Senator Charles E. Schumer called for the Federal Trade Commission to launch an investigation into the newly revised privacy policy for automotive service company OnStar.

“By tracking drivers even after they’ve cancelled their service, OnStar is attempting one of the most brazen invasions of privacy in recent memory,” said Schumer. “I urge OnStar to abandon this policy and for FTC to immediately launch a full investigation to determine whether the company’s actions constitute an unfair trade practice.”

OnStar notified its six million customers of the updates to it privacy policy last Monday. The policy had been amended to include OnStar’s right to track and collect data from vehicles equipped with the OnStar system even after the service contact was terminated as well as OnStar’s right to sell logistical and demographic data collected from its users to undisclosed third parties.

You can read our full coverage of OnStar’s privacy policy changes here.

Update: OnStar has just issued a press release stating it will not continue to track customer’s vehicles after termination of of the OnStar service unless customers op-in.

“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.”

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