General Motors (GM) can’t sell their consumers’ geolocation and driver behavior data to consumer reporting agencies for the next five years, according to a proposed settlement between the automaker and the Federal Trade Commission (FTC).

GM banned for selling driver data for five years after misleading sign-ups and selling sensitive information, FTC claims.

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.

The automaker was accused of collecting drivers' behavior data without their knowledge and providing it to third-party agencies that set insurance rates.

This is the first action the federal agency has taken regarding connected vehicle data. “Respecting our customers’ privacy and earning their trust is deeply important to us. Although Smart Driver was created to promote safer driving behavior,