GM Agrees to $220 Million Settlement Over Alleged Driver Data Sales
General Motors has agreed to a $220 million settlement with a coalition of 36 attorneys general over allegations that it unlawfully sold customer data to third parties.
The allegations center on driver location information and behavior data collected by GM vehicles and services. According to the complaints, data brokers received the information and resold it to insurance companies. Those insurers then used the data to set premiums based on driving habits.
The Washington state attorney general’s office said GM did not clearly tell drivers that their information could be sold for that purpose.
“GM did not disclose to drivers that their data would be sold for this purpose,”
Washington and Oregon co-led the case. The Washington lawsuit focused in part on GM’s Smart Driver feature. The data collected through that program allegedly included hard braking, crossing a designated high-speed threshold, hard acceleration, seat belt usage, and late-night driving.
GM presented Smart Driver as a tool that could help customers improve their driving skills, according to the lawsuit. The complaint alleged that the company did not disclose that the information could be sold to outside parties.
The case also involved location data collected through GM’s OnStar service. According to the allegations, that geolocation information was linked to personally identifiable details, including customer names, addresses, and vehicle identification numbers.
Oregon Attorney General Rayfield said customers expected to buy a vehicle, not become part of a data-tracking system.
“People bought a car, not a tracking device,”
Rayfield’s office said GM told drivers the program would promote safer driving and promised not to share their information with insurers without permission. The investigation, he said, found that the data was sold anyway, with some drivers facing higher premiums.
“GM told drivers this program would help them drive more safely and promised it wouldn’t share their data with insurers without permission. Our investigation found GM sold that data anyway, and some drivers paid for it with higher premiums. This settlement puts people back in control of their own information,”
The complaints accused GM of violating Washington’s Consumer Protection Act and Oregon’s Unlawful Trade Practices Act. Washington will receive $12.3 million under the settlement. Oregon will receive more than $10.4 million, while the remaining money will be distributed among the other states involved.
GM announced in 2024 that it was discontinuing Smart Driver, citing customer feedback. The lawsuits were filed against General Motors LLC, General Motors Holdings LLC, and OnStar LLC, which are subsidiaries of General Motors Company.
The settlement does not include an admission of liability. Under the agreement, GM did not admit to violating local, state, or federal law.
A GM spokesperson said the settlement reinforces other privacy steps taken by the Detroit automaker. The company said connected vehicle data can support safer and more personalized experiences, while also saying customers should understand how their information is used and what choices they have.
“Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it’s protected, and the choices customers have about what they share,”
As part of the agreement, GM accepted restrictions on how it uses driver data. The company is also prohibited from selling that information to data brokers for five years.
This is not GM’s first settlement involving driver information. California was not part of the recent case, but California Attorney General Rob Bonta announced in May that GM agreed to pay $12.75 million in penalties over the alleged illegal sale of location and driving data involving hundreds of thousands of Californians.
Source: The Liberty Daily