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GM to pay $220 million to resolve claims it sold driving habits data

By · Via The Verge · Published by Everything Blog

In short

The resolution addresses claims surrounding GM's defunct Smart Driver program, which secretly monitored metrics like acceleration, trip duration, and braking habits without notifying motorists. Brokers then marketed this driving data to insurers, who leveraged the information to hike rates for select policyholders. The multi-state coalition was co-led by the attorneys general of Oregon and Washington, alongside top legal officials from Florida, Michigan, Nevada, New York, and Pennsylvania. This major enforcement action follows a separate $12.75 million agreement the company finalized in California over related tracking violations.

Key points

  • General Motors must now obtain express consent from drivers before gathering any of their…: General Motors must now obtain express consent from drivers before gathering any of their personal information.
  • The settlement follows an earlier $12.75 million resolution reached between the automaker…: The settlement follows an earlier $12.75 million resolution reached between the automaker and California officials over similar practices.
  • State attorneys general from Oregon and Washington co-led the multi-state coalition along…: State attorneys general from Oregon and Washington co-led the multi-state coalition alongside states including New York, Pennsylvania, and Michigan.

Sources checked by our analysis pipeline: 1

General 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 drivers before collecting their information.

GM to pay $220 million to resolve claims it sold driving habits data

A coalition of 36 state attorneys general secured the settlement, which also requires GM to limit the data it collects.

A coalition of 36 state attorneys general secured the settlement, which also requires GM to limit the data it collects.

The allegations surround GM’s now-discontinued Smart Driver program, which collected data about driving habits, including acceleration, braking, and trip length. GM allegedly passed this information to data brokers, enabling insurance companies to purchase the data and raise premiums. The states also accused GM of failing to notify drivers that they were enrolled in its Smart Driver program, and that the carmaker was collecting their data.

This settlement…

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