● Covered by 5 sources · 5 reportsMedium impact5 neutral
GM to Pay $220 Million to Settle Claims of Illegally Selling Driver Data
Key points
- GM to pay $220 million to settle claims from 36 state attorneys general.
- Settlement addresses alleged illegal sale of driver and location data.
- Data was collected via the Smart Driver program, discontinued in 2024.
- GM must now obtain express consent before collecting or sharing data.
- Data brokers allegedly sold information to insurance companies.
- Settlement involves 35 US states and the District of Columbia.
- GM sold driver data from 2016 to 2024.
- GM tracked hard braking, late night driving, and speeding.
- GM incentivized dealerships with bonuses to sign up customers.
- GM marketed Smart Driver for parents to monitor teen drivers or adults to track driving behavior.
- Drivers found insurance became more expensive due to data sharing.
- GM and OnStar settled with the FTC, finalized in January, banning data sharing for five years.
Settlement Reached Over Driver Data Sales
General Motors has agreed to a $220 million settlement with a coalition of 36 U.S. state attorneys general. The agreement resolves allegations that the automaker illegally sold driver and location information collected through its Smart Driver program to data brokers.
Details of the Allegations
The allegations centered on GM's Smart Driver program, which collected data on driving habits, including acceleration, braking, and trip length. GM allegedly passed this information to data brokers, who then sold it to insurance companies, potentially leading to increased premiums for drivers. States also accused GM of enrolling drivers without their knowledge or express consent and failing to inform them that their data was being collected.
The practice reportedly ran from 2016 until 2024, when it was exposed. GM had marketed the program by emphasizing potential driving safety benefits and allegedly promised customers that data would not be shared with insurers.
Terms of the Agreement
As part of the settlement, GM is required to obtain affirmative express consent from drivers before collecting or sharing their driving behavior and location data. The company must also limit the types of driving data it collects. This settlement aligns with previous agreements GM reached with California and the Federal Trade Commission (FTC).
A new requirement in this settlement mandates that GM have a third party assess its compliance with the privacy program it has implemented.
GM's Response
GM stated that the agreement addresses the Smart Driver product, which it ended in 2024, and reinforces steps taken to strengthen its privacy practices. The company affirmed its commitment to transparency regarding data usage, protection, and customer choices for sharing information related to connected vehicle data.
Updates
- GM marketed Smart Driver for parents to monitor teen drivers or adults to track driving behavior.
- Drivers found insurance became more expensive due to data sharing.
- GM and OnStar settled with the FTC, finalized in January, banning data sharing for five years.
- Settlement involves 35 US states and the District of Columbia.
- GM sold driver data from 2016 to 2024.
- GM tracked hard braking, late night driving, and speeding.
- GM incentivized dealerships with bonuses to sign up customers.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
General Motors will pay $220 million to settle a lawsuit with 35 states and the District of Columbia regarding its Smart Driver system. GM shared customer driving data with data brokers, who then sold it to insurance companies, leading to increased premiums for some drivers who claimed they did not consent to this sharing.
General Motors will pay $220 million to settle a lawsuit brought by 35 US states and the District of Columbia regarding its OnStar Smart Driver program. The automaker sold driver data, including habits like hard braking and speeding, to insurance companies from 2016 to 2024 without customer permission, leading to increased insurance premiums. As part of the settlement, GM must limit data collection, protect personal information, and undergo data protection assessments.
General Motors will pay $220 million to 36 states to resolve allegations it illegally sold private driving behavior and location data to data brokers. The settlement requires GM to obtain express driver consent for data collection and sharing, and mandates third-party compliance assessments, aligning with previous agreements with California and the FTC.
General Motors has agreed to pay $220 million to settle a lawsuit with 36 state attorneys general regarding the alleged unlawful sale of consumer location and driving behavior data. The settlement requires GM to obtain affirmative express consent from customers before collecting or sharing this data, addressing practices from its "Smart Driver" program.
General Motors will pay $220 million to settle claims from 36 US state attorneys general that it illegally sold driver and location data through its Smart Driver program. The settlement requires GM to obtain express consent from drivers before collecting their data and to limit the types of driving data it gathers. This action addresses concerns about consumer privacy and data sharing practices in connected vehicles.