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GM to pay $220 million over alleged sale of drivers' data
General Motors will pay $220 million to 36 states to settle claims it sold driving and location data without proper consent, Connecticut Attorney General William Tong and the automaker said Thursday.
- WTNH News 8 is now reporting this
- New headline Was: “GM reaches $220M settlement over selling drivers’ private data”
- Our desk filed its story
General Motors will pay $220 million to 36 states to settle allegations that it sold private driving-behavior and location data to data brokers without required consent, Connecticut Attorney General William Tong and the automaker said Thursday1,2.
The deal requires GM to obtain drivers' express consent before collecting or sharing driving and location data, terms that TechCrunch said match earlier resolutions with California and the Federal Trade Commission1,2. TechCrunch reported a new obligation that a third party assess GM's privacy-program compliance1.
Tong said Connecticut will receive more than $6 million2. He said the company sold the information to brokers, who sold it to insurers that used it in part to set rates2.
From 2016 to 2024, GM enrolled millions of drivers in Smart Driver, a connected-car feature that tracked driving habits2. WTNH reported GM told drivers it would not share data with insurers without express consent; Tong said GM did not disclose the data would be sold for insurance purposes2. GM discontinued Smart Driver in June 2024, according to a company spokesperson cited by WTNH2.
Tong said the alleged collection and sale affected more than 10,283,000 people, including at least 123,143 Connecticut residents2. He said GM systems failed to notify some drivers they were being tracked, and that the OnStar app told more than 370,000 drivers they were not enrolled in Smart Driver when they were2.
Connecticut began investigating GM and issued a notice of violation in 2024 under the then-new Connecticut Data Privacy Act, then joined the multistate settlement, WTNH reported2.
GM said the agreement addresses Smart Driver and reinforces steps it has taken on privacy practices1,2. The company said it is committed to being clear about what information is used, how it is protected, and the choices customers have1,2. GM said the deal is consistent with prior FTC and California resolutions on Smart Driver2.
TechCrunch reported GM now says it will no longer sell vehicle information that can be linked to an individual, a vehicle's location, or how someone drives, while it may still disclose anonymized data not tied to a person1. The outlet also described planned OnStar features that would let customers manage what data is shared1.
What remains unknown includes how insurers used the data in individual rate decisions, how the $220 million will be allocated beyond Connecticut's stated share, and how the third-party assessment will be structured1,2.
Sources
How it’s being reported
2 sourcesFirst reported by WTNH News 8
GM reaches $220M settlement over selling drivers’ private data
The multistate deal's new third-party assessment and GM's later connected-car and OnStar AI plans.
GM will pay $220 million to 36 states and must obtain express consent plus a third-party privacy-compliance assessment.
Leaves out Connecticut's share of the money, CT Data Privacy Act role, OnStar app enrollment error, and resident counts.
GM settles $220M lawsuit for allegedly selling private drivers' data, Connecticut Attorney General says
Tong's announcement, Connecticut's CTDPA investigation, affected-driver counts, and an OnStar enrollment-notice error.
Connecticut AG William Tong said GM will pay $220 million, with more than $6 million for the state, over alleged sales of driver and location data.
Leaves out The third-party assessor requirement and GM's later OnStar AI product plans.
Where they agree
- GM will pay $220 million in a multistate settlement announced Thursday.
- The case centers on Smart Driver driving and location data sold to brokers, with GM required to obtain express consent going forward.
- GM ended Smart Driver in 2024 and issued a statement framing the deal as addressing that product.
Where they differ
Whether the data sales caused higher insurance premiums