The article posted is clickbait, sensationalist trash...It really doesn't explain the how or why of the problem and what led to a couple of recent class-action lawsuits. The article is designed to stun, and make the reader angry without understanding the issue. Understand first, then let the anger fly.
In short, the issue centers around consent, and personally identifiable information. Three specific issues with consent:
One is data collection in the absence of an active, paid subscription to OnStar or similar service. A lot of folks assumed without a subscription, the telematics system was not reporting data about their car. That's not necessarily the case...
Two, the vehicle is enrolled, not the driver. When you sell a used vehicle and consent* was given to collect data at some point, apparently that enrollment follows the car and a new owner may not even be aware. Similarly if a family shares a car and dad consents to data collection, but mom does not, the car doesn't care. It's going to collect data until the car itself is un-enrolled, and maybe not even then..
Three...OnStar has a specific, named data collection program called Smart Driver. Many folks say they never consciously opted in, but found themselves enrolled. Even worse, some report after un-enrolling and opting out of the program, they found themselves re-enrolled after things like app updates or subscription changes for the telematics program. There have been reports of dealer sales people opting people in without their knowledge/consent because of kickback programs and other ugly practices.
Here's the issue with PII: Some drivers discovered their insurance premiums skyrocketed or policies were cancelled as a result of insurance companies buying data from a 3rd party analytics and data warehousing firms, like Lexis-Nexis. OnStar is supposedly selling depersonalized data. It is not believed they are specifically saying "John Smith accelerated hard and exceeded 80mph five times this week". They are likely reporting a VIN with driving data.
The connection to a person may be happening on the insurance company's side. They see in the data file that VIN 1G1FP123 was recorded doing in excess of 80mph five times this week with a bunch of hard acceleration. The insurance company has access to State-owned vehicle registration systems and has additional data via its policy holders to be able to link the fact that VIN 1G1FP123 belongs to John Smith who insures his car with us. It's not terribly different from things they already do like buy data about driving records and credit reports. This data Lexis is selling is a bit more useful and timely in helping them appropriately assess certain types of risk.
Blah Blah...OnStar was not only hit with lawsuits recently, but the backlash and negative PR was so bad recently that GM reportedly stopped selling data to Lexis.
It's not just OnStar. If your vehicle has a telematics system, it may be reporting data whether you want it to or not, and whether you think you consented to that, or not.
But it's important to understand the differences and means of reporting data. If a car has an On Board Diagnostics system, it may report information to the telematics system for use by the manufacturer. There are also specific types of reporting/data collection programs like OnStar Smart Driver which allow the vehicle to share additional data. Including location, at all times.
It's not just the car. If you use the OnStar or MyChevrolet, MyGMC, MyBuick or other apps from the manufacturer, on your cell phone, they also collect certain types of data about usage and driving and all sorts of things.
If you have your insurance company's app installed on your phone...they may be collecting certain types of data while you are driving.
Your phone, no matter what apps you have installed, is collecting and transmitting all sorts of data while you are driving (and potentially some data about your driving!).
Insurance companies now even have plug-in devices that you plug into the car's OBD port so they can monitor your driving habits.
There is plenty of recent, great, highly investigative and informative journalism on this topic through a variety of sources. I suggest anyone who is bothered by the mention of any of this, or wants to know more should go hit the papers, books, and some parts of the internet.
It goes without saying, if you own a vehicle with a telematics system, now is high time to understand exactly what you've consented to, your enrollment status, and if you are at all concerned, how to "opt out".