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General Motors Agrees To Pay $220 Million Over Smart Driver Data Privacy Claims
“General Motors will pay Ohio more than $8 million”
“General Motors will pay $220 million to settle claims”
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GM to pay $220 million to settle privacy claims over selling Smart Driver data. Settlement with 35 states and D.C. includes limits on data collection and required consent.
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Smart Driver Data Settlement
General Motors agreed to pay $220 million to settle claims by the attorneys general of 35 states and the District of Columbia over Smart Driver, which enrolled millions of drivers. General Motors faced allegations that it sold drivers’ location and behavior data to brokers without permission, and the brokers then passed the data to insurers that used it to set and sometimes increase rates.
Connecticut Attorney General William Tong said in a Thursday press release that "GM turned private vehicles into mobile surveillance machines for insurance purposes without the consent or knowledge of consumers." General Motors told Reuters in a statement that "Safer, more helpful and personalized experiences are enabled by connected vehicle data," and the company said it is committed to being clear about what information is used and the choices customers have about what they share.
State Coalition and Rules
The settlement resolved claims in 35 states and Washington, DC, and the agreement also restricts how GM collects and shares driving data. The WTNH report said the settlement resolves accusations that GM illegally sold private data and drivers' location information to third parties, and it said the coalition of 35 state attorneys general and Washington, D.C. alleged the data were used in part to set insurance premiums.
The settlement required GM to obtain consumers' consent before collecting or disclosing their driving and location data, according to the WKRC account of the terms. The WTNH report said GM stated that the tool could be used to help drivers improve their own safety behind the wheel and assured that it would not share their data with insurers without explicit consent, even as state officials said drivers were enrolled without their knowledge by GM dealership employees who received bonuses based on enrollment numbers.
FTC Terms and Compliance
The Ars Technica account said GM and its OnStar subsidiary entered into a settlement with the FTC that was finalized this January, and that agreement banned the two companies from sharing geolocation data or driver behavior data for five years. Ars Technica also said GM discontinued Smart Driver across its entire range after the FTC settlement, and it said the automaker reached terms with the District of Columbia and 35 states after their attorneys general joined together to sue GM.
The Ars Technica report added that the settlement with the states is notable because a third party is required to assess GM’s compliance with the new privacy program. The WFLA report said a GM spokesperson described the settlement as strengthening GM's commitment to protecting drivers’ privacy, and the company stated, "This settlement addresses Smart Driver, a product we stopped marketing in 2024, and reinforces the steps we have taken to strengthen our privacy practices."