GM to pay $220 million to resolve claims it sold driving habits data
General Motors agrees to pay $220 million to settle claims with 36 state attorneys general over selling driver location and behavior data.
Stock photo for illustration only, not from the actual event
- GM agrees to a $220 million settlement over data claims
- A coalition of 36 state attorneys general led the case
- The Smart Driver program was previously discontinued in 2024
- GM must limit data collection and secure express consent
General Motors has agreed to pay 220 million dollars to resolve allegations that it illegally sold driver and location information to data brokers. The agreement addresses a complaint brought forward by a coalition of 36 United States attorneys general. In addition to the massive financial penalty, the settlement requires GM to restrict the amount of driving data it collects and secure explicit consent from motorists before gathering any of their personal information.
Stock photo for illustration only, not from the actual event
The allegations center around GM's now-discontinued Smart Driver program, which tracked metrics regarding driving habits such as acceleration, braking, and total trip lengths. According to the claims, GM passed this information along to data brokers, allowing insurance companies to purchase the data and subsequently raise insurance premiums for drivers. Furthermore, the states accused the automaker of failing to notify motorists that they were automatically enrolled in the tracking program and that their data was being harvested.
Charlotte McCoy, a spokesperson for GM, stated in an emailed release that the agreement addresses the Smart Driver product which the company ended back in 2024, reinforcing steps taken to enhance privacy practices. She added that connected vehicle data enables safer and more personalized experiences, and GM remains committed to transparency regarding what information is used, how it is protected, and the choices available to customers.
"People bought a car, not a tracking device"
Dan Rayfield
This nationwide settlement arrives just months after GM agreed to pay 12.75 million dollars to resolve similar privacy allegations in California. Oregon Attorney General Dan Rayfield and Washington Attorney General Nick Brown co-led the multistate case against the automaker, which also included participation from New York, Florida, Michigan, Nevada, Pennsylvania, and numerous other states.
This multi-million dollar settlement highlights a growing regulatory scrutiny on connected car data privacy. As modern vehicles collect vast amounts of telemetry and behavioral insights, automakers face increasing pressure from state regulators to treat driver data with strict confidentiality, preventing hidden monetization schemes that directly impact consumer insurance costs.
Dan Rayfield noted in a press release that consumers purchased vehicles rather than tracking devices, emphasizing that GM promised the program would promote safer driving without sharing data with insurers without permission. Investigators ultimately found that the information was sold regardless, resulting in higher financial burdens for drivers through inflated insurance rates.
Source: The Verge
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