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OnStar Cancels Plan To Track Cars Of Former Customers

WARREN, Mich. (CBS) - OnStar has made a U-turn on a policy that raised privacy concerns among former customers and led to calls from lawmakers for a federal investigation.

OnStar now says it won't track a car's location, speed -- even whether seat belts are fastened -- after the service is canceled.

The system is in millions of cars and summons help when you're in an accident -- or even if you just need directions.

But some US senators, including Sen. Chris Coons (D-Del.), said OnStar went way out of bounds when it announced it could collect and sell data from people who weren't even paying to use the service (see related story).

On Sunday, US Sen. Charles Schumer (D-NY) called OnStar's previous policy one of the most brazen invasions of privacy he's ever seen (see related story). He had sought a federal investigation.

Linda Marshall, the company's president, admits that subscribers weren't satisfied with the proposed change, so OnStar is dropping it.  And those who want to become ex-customers won't have to do a thing to opt out of the data collection -- it's automatic.

Reported by Ian Bush, KYW Newsradio 1060

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