General Motors reached a settlement agreement worth $220 million to resolve allegations brought by a coalition of 36 US attorneys general regarding the unauthorized sale of driver information and location data to third-party data brokers.
The case centered on GM’s Smart Driver program, which the automaker discontinued in 2024. The program collected detailed information about driving behaviors, including acceleration patterns, braking habits, and trip distances. According to the allegations, GM provided this collected data to data brokers, which subsequently sold the information to insurance companies. The states alleged that insurers then used this data to make coverage decisions and adjust premium rates for drivers.
A key element of the complaint involved notification and consent issues. State attorneys general accused GM of enrolling drivers in the Smart Driver program without adequately informing them of their participation, and they contended that drivers were not clearly notified that their data would be collected. Furthermore, the states alleged that GM sold driver information to insurers despite representations made to consumers that such data would not be shared with insurance companies.
In a statement provided to media outlets, GM acknowledged the settlement and noted that it has already implemented measures to strengthen its privacy protocols. The company stated that connected vehicle data enables improved user experiences and emphasized its commitment to transparency regarding what information is collected, how it is protected, and what choices customers have regarding data sharing.
This settlement represents the second major enforcement action against GM on privacy grounds in recent months. The company previously agreed to pay $12.75 million in California to address comparable allegations. The multistate case was co-led by Oregon Attorney General Dan Rayfield and Washington Attorney General Nick Brown, with participation from authorities in New York, Florida, Michigan, Nevada, Pennsylvania, and numerous other states.
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