GM Reaches Settlement Over Smart Driver Data Sharing Practices

General Motors has reached terms with the District of Columbia and 35 states following a joint lawsuit regarding the automaker's Smart Driver system. Reports indicate that the settlement follows previous legal actions involving consumer data privacy concerns.

Background on the Smart Driver Controversy

• GM originally marketed the Smart Driver system to help parents monitor teen drivers and track driving behavior.
• Reports in 2024 revealed that customer driving data was shared with data brokers.
• Brokers subsequently sold the information to insurance companies, leading some motorists to report unexpected insurance rate hikes.
• Many affected drivers stated they were unaware their data was being shared for such purposes.

Regulatory Actions and FTC Settlement

Last year, GM and its OnStar subsidiary entered into a settlement with the Federal Trade Commission to address data-sharing practices. That agreement was finalized in January, banning the companies from sharing geolocation and driver behavior data with third parties for a period of five years. GM also discontinued the Smart Driver feature across its vehicle lineup around that time.

Details of the Recent State Agreement

• The District of Columbia and 35 state attorneys general joined to sue GM, leading to the latest terms.
• According to reports by TechCrunch, the state settlement includes a requirement for a third party to assess GM's compliance with its privacy program.
• In a public statement, GM emphasized its commitment to transparency regarding vehicle data, stating that connected vehicle data enables personalized experiences while maintaining a focus on information protection and customer choice.

Practical Implications and Verification

Consumers concerned about vehicle data privacy can review their connected vehicle settings, consult the privacy policies of their respective automotive brands, and check official state attorney general announcements for verified legal updates.