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GM reaches $220M settlement over selling drivers’ private data

By · Via TechCrunch · Published by Everything Blog

In short

The multi-state agreement resolves claims surrounding the discontinued Smart Driver feature, which monitored metrics such as seatbelt use and precise vehicle movements without proper authorization. Beyond the financial penalty, the pact mandates explicit consumer consent prior to any data harvesting and requires an independent monitor to oversee corporate compliance. The action builds on prior regulatory enforcement from California and the Federal Trade Commission, which previously restricted data transfers by GM and OnStar.

Key points

  • The automaker is legally required to obtain explicit driver consent before gathering or s…: The automaker is legally required to obtain explicit driver consent before gathering or sharing vehicle location and driving records.
  • An independent third-party monitor will be appointed to evaluate and ensure ongoing compl…: An independent third-party monitor will be appointed to evaluate and ensure ongoing compliance with privacy standards.
  • General Motors retains the ability to distribute anonymized vehicle data that is entirely…: General Motors retains the ability to distribute anonymized vehicle data that is entirely disconnected from individual drivers.

Sources checked by our analysis pipeline: 1

General Motors will pay $220 million to 36 states to settle allegations that it illegally sold private driving behavior and location information to data brokers.

As part of the settlement, GM must get drivers’ express consent before it collects or shares their driving and location data — terms that are in line with separate agreements it previously reached with California and the Federal Trade Commission. This settlement does contain a new requirement that GM must have a third-party assess the automaker’s compliance with the privacy program it has put in place.

The agreement announced Thursday settles a lawsuit brought by a coalition of attorneys general from 36 states that alleged GM had sold the information to data brokers, which in turn then sold it to insurance providers.

“This agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we’ve taken to strengthen our privacy practices,” GM said in an emailed statement. “Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it’s…

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