General Motors Settles Data Privacy Claims for $220 Million
GM faces legal repercussions over unauthorized sharing of driver data with insurance brokers.
1Massive Settlement Over Data
General Motors agreed to pay $220 million to 35 US states and the District of Columbia. This settlement resolves allegations that the automaker sold driver data to brokers without explicit consent. Washington and Oregon led the coalition of 36 attorneys general, securing significant financial penalties for the unauthorized collection and sharing practices.
2Monetization of Driving Habits
Launched in 2015, the Smart Driver feature recorded metrics like hard braking, acceleration, and high speeds. GM sold this identifiable information to Verisk Analytics and LexisNexis Risk Solutions. These firms generated driver reports used by insurance companies to set rates, earning GM over $20 million in revenue from these specific data sales.
3Deceptive Enrollment Practices
Dealership staff often enrolled customers in Smart Driver to receive performance bonuses. In many instances, staff accepted terms on behalf of drivers without their knowledge. Customers attempting to decline OnStar terms were warned they would lose critical crash response services, creating a coercive environment that prioritized data collection over user choice.
4Precise Location Tracking
Starting in 2018, GM collected precise vehicle location data every three seconds upon ignition. By 2019, this data included unique IDs linking movements to specific vehicles. This information was licensed to Wejo, a connected-car data company, further expanding the scope of personal information shared beyond the original scope of safety services.
5Regulatory and Legal Fallout
The practice surfaced publicly in March 2024, leading to the termination of the Smart Driver program in April 2024. Beyond the state settlement, the Federal Trade Commission finalized an order in January 2025 banning GM from sharing certain data with reporting agencies for five years. California also secured a separate $12.75 million settlement.
6Impact on Consumer Insurance
The consequences for drivers were tangible, with some reporting significant insurance premium hikes. One Chevrolet Bolt owner saw their insurance costs rise by 21% after a LexisNexis report detailed 640 trips, including specific speeding and braking events. This highlights how aggregated driving data directly influenced financial outcomes for individual vehicle owners.
7New Compliance Requirements
Under the new agreement, GM must obtain express consent before collecting or sharing any driving or location data. The company is required to implement a formal data privacy program, conduct internal and third-party assessments, and provide mandatory training for dealership staff to ensure future compliance with these strict new privacy standards.
8Industry Privacy Standards Shift
While GM has ended Smart Driver, the broader industry continues to grapple with connected-car data ethics. Other manufacturers like Volvo maintain driving-grade apps, while regulators globally, such as Ireland’s data watchdog, are increasingly aggressive. This case sets a precedent for how automakers must balance vehicle connectivity with fundamental consumer data privacy rights.
Original article: The Next Web — General Motors Settles Data Privacy Claims for $220 Million