General Motors Agrees to $220 Million Multistate Settlement Over Driver Privacy Violations
General Motors will pay $220 million to 36 states to settle allegations of illegally selling driver behavior and geolocation data to data brokers.
In Brief
- •General Motors will pay $220 million to 36 states to settle allegations of illegally selling driver behavior and geolocation data to data brokers.
- •The settlement obligates GM to obtain explicit user consent prior to collecting or sharing driving metrics, in addition to undergoing third-party compliance audits.
- •The metrics were collected through GM's Smart Driver feature, which was discontinued in 2024 after revelations that data reached insurance providers.
- •GM announced it will no longer sell vehicle data linked to individuals or locations, though it retains the option to share anonymized data.
Why It Matters
This settlement underscores intensifying legal and regulatory scrutiny over automotive data monetization as modern vehicles become software-centric platforms. By mandating explicit consent and independent oversight, the agreement establishes significant privacy benchmarks for automakers introducing AI assistants and connected telematics into consumer vehicles.
Key Details
- Settlement Amount
- $220 million
- Participating Entities
- 36 state attorneys general
- Discontinued Program
- Smart Driver (ended in 2024)
- Key Mandates
- Explicit consumer consent and third-party compliance assessments
Context & Background
In 2024, reporting revealed that connected vehicle telematics programs were providing driving behavior metrics to data brokers such as LexisNexis and Verisk, which subsequently sold the records to auto insurers. The practice triggered widespread regulatory action from state attorneys general and federal oversight bodies to enforce consumer consent standards.
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