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GM agrees to $220 million settlement with 36 states over driver data
The Record reported that General Motors agreed Thursday to pay $220 million to settle claims by 36 state attorneys general that it sold location and driving-behavior data, including to brokers serving insurers.
General Motors agreed Thursday to pay $220 million to settle a lawsuit brought by 36 state attorneys general who alleged the company unlawfully sold consumers' location and driving-behavior data to outside parties, including data brokers, The Record reported1.
Washington Attorney General Nick Brown, who co-led the coalition, said in a press release cited by The Record that brokers then sold the data to insurers, affecting prices drivers were charged1.
The settlement also requires GM to obtain customers' affirmative express consent before collecting or sharing driving-behavior and location data, The Record said1.
The states alleged that from 2016 through 2024 GM enrolled millions of people in its Smart Driver program, marketed as a way to improve driving safety, and promised not to give insurers the data without affirmative consent1. They alleged GM sold the information to brokers despite contract language showing the brokers planned to profit by providing it to insurers, and did not tell participating customers, according to The Record1.
A GM spokesperson said in an emailed statement that the "agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we've taken to strengthen our privacy practices"1. The company also said connected-vehicle data can enable personalized experiences and that it is committed to being clear about what information is used, how it is protected, and customers' choices1.
Most customers agreed to participate at dealerships while buying cars, The Record said, and many described pressure to sign1. Enrollment also swept drivers into OnStar services, and dealership employees were allegedly given bonuses for enrollments, with GM ranking dealerships on those numbers, according to the attorneys general press release as reported by The Record1.
GM shut down the program after public reporting about the practice, The Record said1.
A similar 2024 lawsuit by Texas Attorney General Ken Paxton remains pending, The Record reported, with Texas seeking a jury trial, civil penalties of up to $10,000 per offense, and an order that GM delete collected data1.
