GM to pay $220 million over sale of driving habits data

General Motors has agreed to pay $220 million to settle claims that it illegally sold driver and location information to data brokers, as Reuters reported earlier. The agreement resolves a complaint brought by a coalition of 36 US state attorneys general.

Beyond the payment, GM must limit the driving data it collects and obtain "express consent" from drivers before gathering their information.

The Smart Driver program

The claims center on Smart Driver, a GM program that has since been discontinued. It recorded driving habits such as acceleration, braking, and trip length. According to the states, GM passed this data to brokers, from whom insurance companies could buy it and then raise premiums.

The states also allege that GM failed to tell drivers that they had been enrolled in Smart Driver, or that the carmaker was collecting their data at all.

What both sides say

GM spokesperson Charlotte McCoy told The Verge that the agreement concerns a product the company ended in 2024 and reinforces steps it has already taken to strengthen its privacy practices. She said connected vehicle data enables safer, more helpful, and personalized experiences, and that GM is committed to being clear about what information is used, how it is protected, and what choices customers have.

The case was co-led by Oregon Attorney General Dan Rayfield and Washington Attorney General Nick Brown. The coalition also included New York, Florida, Michigan, Nevada, Pennsylvania, and many other states.

"People bought a car, not a tracking device," Rayfield said in a press release. He noted that GM had promised the program would help people drive more safely and that their data would not go to insurers without permission. The investigation, he said, found that GM sold the data anyway, and some drivers paid for it through higher premiums.

The settlement comes just months after GM paid $12.75 million to resolve similar claims in California.

Source: The Verge