# General Motors Settles Multi-State Data Privacy Lawsuit for $220 Million Automaker resolves claims regarding unauthorized driver data sales to insurance companies. - **Source:** [Engadget - Technology News & Expert Reviews](https://brifing.si/source/16dd2da6-3eea-4d1e-b34f-45e846cdf037) - **Published:** 2026-10-30 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/78408951-1e78-4e36-bf41-2493507202e4 ## Massive Settlement Reached General Motors has agreed to a $220 million settlement with 35 US states and the District of Columbia. This resolution addresses allegations that the automaker improperly sold driver data to insurance companies. The legal action followed reports that GM tracked customer driving habits through its OnStar Smart Driver program without obtaining explicit consent. ## Program Data Collection Scope Between 2016 and 2024, GM enrolled millions of customers into the Smart Driver program. The system logged specific driving behaviors including hard braking, speeding, and late-night driving patterns. This identifiable information was subsequently sold to data brokers, which directly influenced insurance companies to increase premiums for many of the affected vehicle owners. ## Dealership Enrollment Practices The investigation revealed that GM incentivized dealership employees with bonuses to maximize program sign-ups. In numerous instances, dealership staff allegedly accepted terms and conditions on behalf of customers without their express permission. This aggressive sales strategy resulted in many drivers being enrolled in the tracking program without their knowledge or any clear disclosure. ## Systemic Enrollment Failures Attorneys general reported that over 370,000 drivers were incorrectly told they were not enrolled in the program when they actually were. Although GM eventually unenrolled these individuals, the company failed to notify them of the error. Furthermore, the automaker continued to sell their personal data despite the known inaccuracies in the enrollment status. ## Mandated Privacy Compliance Measures As part of the settlement, GM must strictly limit the driving data it collects from customers moving forward. The company is now required to implement robust protections for personal information. These operational changes include mandatory internal and external assessments of their data privacy programs to ensure future compliance with state and federal legal standards. ## Enhanced Dealership Oversight The settlement mandates additional training for all dealership employees regarding data collection and customer consent protocols. This oversight aims to prevent the recurrence of unauthorized enrollments and ensure transparency in how vehicle data is handled. GM must now maintain stricter control over how its retail network interacts with customer privacy and data agreements. ## Prior Regulatory Actions This $220 million agreement follows earlier regulatory interventions regarding GM's data practices. The Federal Trade Commission previously banned the automaker from sharing specific consumer data with third parties for a five-year period. Additionally, GM reached a separate settlement with the state of California earlier this year, which required a payment of $12.75 million. ## Industry Data Implications The case highlights the growing tension between connected vehicle technology and consumer privacy rights. As automakers increasingly monetize driving data, the legal scrutiny surrounding consent and transparency is intensifying. This settlement serves as a significant benchmark for how major manufacturers must manage and protect sensitive consumer information within their digital service ecosystems. ## Sources covering this story - https://www.engadget.com/2301934/general-motors-220-million-settle-multi-state-data-privacy-lawsuit/ — --- _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._