# General Motors Settles Data Privacy Lawsuit for $220 Million GM agrees to strict consent protocols after selling driver data to brokers. - **Source:** [Slashdot](https://brifing.si/source/0f34d58e-1ccd-45a6-ab82-2de4065dc7ad) - **Published:** 2026-10-30 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/765a4b53-d2e5-460f-9005-5172314a5ee3 ## Multi-State Settlement Agreement General Motors has agreed to pay $220 million to settle legal claims brought by a coalition of 36 states. The lawsuit alleged that the automaker illegally sold private driving behavior and location information to data brokers. This financial resolution concludes a significant legal challenge regarding the company's handling of sensitive consumer vehicle data. ## Mandatory Consent Protocols Under the new settlement terms, General Motors is strictly required to obtain express consent from drivers before collecting or sharing any location or driving data. These specific requirements align with previous agreements reached with California authorities and the Federal Trade Commission, ensuring a standardized approach to privacy across all operational regions in the country. ## Third-Party Compliance Oversight The agreement introduces a novel requirement mandating that an independent third party must assess General Motors' compliance with its established privacy program. This external oversight is designed to verify that the automaker adheres to its stated privacy practices, providing an additional layer of accountability beyond internal corporate governance and previous regulatory settlements. ## Smart Driver Program Termination The settlement specifically addresses the Smart Driver program, a feature that General Motors officially discontinued in 2024. This program tracked driving behaviors, including seat belt usage, through connected car applications. The company stated that this resolution reinforces the steps they have already taken to strengthen their overall privacy practices for vehicle owners. ## Data Brokerage Mechanism The legal action stemmed from allegations that GM sold consumer information to data brokers, who subsequently resold that data to insurance providers. This practice directly impacted customers, as the shared driving behavior and geolocation data could influence their insurance rates, creating a secondary market for personal information without the explicit knowledge of vehicle owners. ## Historical Context of Allegations The settlement follows a critical report published over two years ago by The New York Times. That investigation detailed how GM and its OnStar service collected and sold precise geolocation data to third-party brokers, specifically naming LexisNexis and Verisk as recipients. This reporting served as the primary catalyst for the subsequent legal scrutiny. ## Corporate Stance on Data General Motors maintains that connected vehicle data enables safer and more personalized experiences for drivers. In an emailed statement, the company emphasized its commitment to transparency regarding what information is used and how it is protected. They highlighted that customers now have clearer choices concerning the specific data they share with the manufacturer. ## Industry Privacy Implications This $220 million settlement signals a tightening regulatory environment for connected vehicle manufacturers. By forcing automakers to implement third-party audits and obtain express consent, the legal outcome sets a precedent for how automotive companies manage user data. Future operations must now balance the benefits of connected services with rigorous, transparent consumer privacy protections. ## Sources covering this story - https://yro.slashdot.org/story/26/10/30/168202/gm-reaches-220-million-settlement-over-selling-drivers-private-data?utm_source=rss1.0mainlinkanon&utm_medium=feed — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._