GM to pay $220 million over sale of drivers' data

Summarised from 4 outlets · Updated 30 Oct, 14:27 · Archive

General Motors has agreed to pay $220 million to settle claims it illegally sold drivers' location and behaviour data to insurance companies.

General Motors has agreed to pay $220 million to settle claims from attorneys general representing 36 US states and the District of Columbia that it illegally sold drivers' location and behaviour data to insurance companies. The settlement centres on GM's now-discontinued Smart Driver program, which tracked driving habits including acceleration, braking, speeding and trip length from 2016 to 2024. Data brokers including LexisNexis and Verisk then sold this information to insurance companies, which used it to raise premiums.

Many drivers did not know they were enrolled in Smart Driver or that their data was being sold. Engadget reports that dealership employees sometimes enrolled customers without their express permission, and that more than 370,000 drivers were told they were not enrolled when they actually were. Even after GM eventually unenrolled these drivers, it did not notify them and continued to sell their data.

As part of the settlement, GM must obtain express consent from drivers before collecting or sharing their driving and location data. The agreement requires the automaker to limit the driving data it collects and protects going forward. TechCrunch notes that a new requirement mandates a third party to assess GM's compliance with its privacy program, rather than relying on the company's own assurances.

GM said in a statement that the Smart Driver program had ended in 2024 and that the settlement "reinforces steps we've taken to strengthen our privacy practices". Oregon attorney general Dan Rayfield said in a press release: "People bought a car, not a tracking device. 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 comes months after GM agreed to pay $12.75 million to resolve similar claims in California and follows a 2024 New York Times report revealing how GM and OnStar collected, used and sold drivers' precise geolocation data to third parties. Last January, GM and OnStar finalised a separate settlement with the Federal Trade Commission, which banned them from sharing geolocation data or driver behaviour data for five years.

How it is being reported

• GM to pay $220 million after selling customer Smart Driver dataOwners of GM cars found their driving data had been sold to insurance companies.Ars Technica · 30 Oct, 13:53
• General Motors agrees to pay $220 million to settle multi-state data privacy lawsuitGM has settled the Smart Driver program lawsuit brought by 35 attorneys general.Engadget · 30 Oct, 07:44
• GM reaches $220M settlement over selling drivers’ private dataAs part of the settlement, GM must get drivers’ express consent before it collects or shares their driving and location data.TechCrunch · 29 Oct, 21:01
• GM to pay $220 million to resolve claims it sold driving habits dataGeneral Motors has agreed to pay $220 million to settle claims that it illegally sold driver and location information to data brokers, as reported earlier by Reuters. The agreement, which resolves a complaint from a coalition of 36 US attorneys general, requires GM to limit the driving data it collects and obtain "express consent" from […]The Verge · 29 Oct, 19:19

In this story: General Motors · Smart Driver · OnStar · LexisNexis · Verisk · Dan Rayfield · United States

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log