GM agrees to $220M settlement over selling drivers' private data
US automaker General Motors will pay $220 million to 36 states to resolve allegations that it illegally sold drivers' behavior and location data to data brokers. The deal requires explicit customer consent for data collection.
General Motors (GM), the US automaker, announced on Thursday that it will pay $220 million to 36 states. The payment settles a lawsuit alleging the company illegally sold data on drivers' behavior and location to data brokers. The case was brought by a coalition of attorneys general from 36 states, which said the brokers then resold the information to insurance providers.
What the agreement requires
GM must now obtain drivers' express consent before collecting or sharing their driving and location data. These terms match separate agreements the company previously reached with California and the Federal Trade Commission (FTC). One new element is a requirement that a third party assess whether GM complies with the privacy program it has put in place.
Background
The settlement comes more than two years after a New York Times report. It showed that GM and its OnStar service collected and sold precise geolocation and driving behavior data to third parties, including the data brokers LexisNexis and Verisk. The data came from the Smart Driver program, a free feature in GM's connected car apps that tracked and rated driving behavior and seatbelt use. According to the New York Times, the information could affect customers' insurance rates.
GM ended Smart Driver in 2024. In January, the FTC finalized an order banning GM and its OnStar telematics service from sharing certain consumer data.
GM's position
The company said the agreement concerns a product it discontinued in 2024. GM says it will no longer sell vehicle information that can be linked to an individual, a vehicle's location or the way someone drives. It may still share anonymized data not tied to an individual with certain partners. GM has also updated its privacy policy language and created a consumer-facing Privacy Center.
The automaker is currently adding a personal AI assistant to OnStar. GM says customers will be able to manage permissions, but those who choose not to share their data will likely have limited access to some features.
