GM to Pay $220 Million to Settle Data Privacy Claims

General Motors has agreed to pay $220 million to settle claims that it illegally sold driver and location information to data brokers. The settlement resolves a complaint filed by a coalition of 36 US attorneys general. The agreement requires GM to obtain express consent from drivers before collecting their driving data. It also mandates that a third party assess GM's compliance with its privacy program.

The allegations concern GM's discontinued Smart Driver program, which collected data on acceleration, braking, and trip length. States accused GM of failing to notify drivers that they were enrolled in the program. GM allegedly passed Smart Driver information to data brokers, allowing insurance companies to purchase the data and raise premiums. The lawsuit was brought by attorneys general from 36 states alleging GM sold information to data brokers which then sold it to insurance providers. Oregon AG Dan Rayfield and Washington AG Nick Brown co-led the states' case against GM.

This settlement comes months after GM agreed to pay $12.75 million to settle similar claims in California. In January, the FTC finalized an order banning GM and OnStar from sharing certain consumer data for five years. The FTC agreement banned GM and OnStar from sharing geolocation or driver behavior data for five years. A New York Times report more than two years prior showed GM and OnStar collected and sold precise geolocation data to brokers LexisNexis and Verisk. GM and its OnStar subsidiary entered into a settlement with the FTC last year, finalized in January.

GM stated it will no longer sell vehicle information linked to an individual, their location, or driving habits. The settlement addresses Smart Driver, a product GM ended in 2024. GM reached terms with the District of Columbia and 35 states after their attorneys general sued GM.