The legal action stems from the company's Smart Driver program, which tracked driving habits and seatbelt usage through connected car applications. This information was reportedly sold to brokers like LexisNexis and Verisk, often ending up in the hands of insurance providers who used the data to adjust customer rates. Although GM discontinued the program in 2024, the settlement requires the automaker to undergo third-party assessments to ensure future compliance with its updated privacy framework.
General Motors Agrees to $220 Million Privacy Settlement
A coalition of 36 state attorneys general has secured a $220 million settlement from General Motors over allegations that the automaker funneled private driving behavior and location data to third-party brokers. The deal mandates strict new consent protocols for how the company handles sensitive information collected from its connected vehicles.
Beyond the financial penalty, the agreement forces the company to adopt transparent data practices, mirroring prior commitments made to the Federal Trade Commission. While GM now claims it will no longer sell information linked to specific individuals or their vehicle location, the company reserves the right to share anonymized data with partners. As vehicles become increasingly reliant on software and AI-driven assistants, this settlement sets a precedent for how manufacturers must balance the push for digital integration with the growing demand for consumer data protection.
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