GM to Pay $220 Million Over Driver Data Sales
The settlement resolves allegations that GM shared driving and location information from its Smart Driver program with data brokers, which could pass it on to insurers. The program tracked millions of customers from 2016 until it was discontinued in 2024. The states said some drivers’ insurance premiums rose after insurers obtained the data.
The states alleged that GM told customers their information would not be shared with insurers without permission, yet sold data for insurance-related use. They also said some customers were enrolled without their knowledge, including when dealership employees accepted program terms for them. More than 370,000 drivers were reportedly told they were not enrolled even though their data was being tracked.
Under the agreement, GM must limit the driving data it collects and get drivers’ express consent before collecting or sharing driving and location information. The company must also have an outside party assess its privacy program, with additional oversight and training at dealerships.
GM said Smart Driver ended in 2024 and that the settlement reinforces steps it has taken to strengthen privacy practices. The deal follows a separate $12.75 million California settlement and an earlier Federal Trade Commission order restricting GM and OnStar from sharing certain consumer data.
GM Must Answer for Selling Drivers’ Data Without Consent
GM’s $220 million settlement recognizes the stakes of allowing a company to turn people’s everyday driving into a product for insurers. Attorneys general from 36 states and the District of Columbia alleged that GM sold driving and location data to brokers, whose customers included insurance companies. Some drivers saw premiums rise after insurers obtained the information.
The program ran from 2016 to 2024, and the states said customers were not always told they had been enrolled. Dealership employees allegedly accepted program terms for customers, while more than 370,000 drivers were told they were not enrolled despite being tracked. The allegations show why privacy protections need to mean more than a company’s assurances.
The agreement requires GM to limit what it collects, obtain express consent before collecting or sharing driving and location data, and submit its privacy program to an outside assessment. It also brings dealership oversight and training. GM says the deal reinforces privacy steps it has taken, but the requirements matter because customers need real control over sensitive information—not just promises after it has reached data brokers.
The settlement follows a separate California agreement and an FTC order restricting GM and OnStar from sharing certain consumer data. Together, those measures reflect the need for enforceable safeguards when a company collects information that can affect people’s insurance costs.
GM’s Data Settlement Raises Questions About Consent and Regulation
A 36-state coalition’s $220 million settlement with GM adds another layer of government oversight to how automakers handle connected-car data. The agreement requires GM to limit data collection, obtain express consent before collecting or sharing driving and location information, and submit its privacy program to an outside assessment.
The case concerned Smart Driver, a program that tracked customers’ driving from 2016 until it ended in 2024. States alleged GM passed data to brokers for insurance use, and that some drivers faced higher premiums. They also said customers were enrolled without their knowledge; more than 370,000 were reportedly told they were not enrolled despite being tracked.
Those allegations deserve scrutiny, particularly where customers were not informed or did not consent. But the settlement’s new requirements also show how far regulators are directing the handling of connected-vehicle information. GM has said connected data can support safer and more personalized experiences, and said it is committed to clarifying what it uses and what choices customers have.
The settlement follows a separate California agreement and an FTC order restricting GM and OnStar from sharing certain consumer data. The challenge is protecting drivers’ privacy while preserving clear, informed choices about connected-car features and the data they require.
Reported by FOX 2 Detroit, The Verge, TechCrunch, KJZZ, Engadget, Ars Technica.
