General Motors Agrees to $220 Million Settlement Over Driver Data Allegations

General Motors has agreed to a $220 million settlement with 36 states and the District of Columbia following allegations that the automaker improperly collected and sold drivers' personal information to insurance companies, according to the Washington Office of

Investigation Findings and Smart Driver Program

The bipartisan investigation, co-led by Washington and Oregon, examined practices from 2014 to 2024 regarding GM's Smart Driver program. According to state officials:

• Millions of drivers were enrolled in the program, often during the vehicle purchase process at dealerships.
• Dealership employees allegedly enrolled customers without proper consent during a period when GM rewarded sales staff with bonuses for signups.
• The OnStar app reportedly misinformed over 370,000 drivers about their enrollment status while allowing data brokers to retain information.
• Sold data included specific driving behaviors such as braking, acceleration, speeding, and travel timestamps, which reportedly led to higher insurance premiums for some drivers.

GM ended the Smart Driver program in April 2024. The investigation was supported by attorneys general from numerous other states, including Colorado, Illinois, New York, Florida, and Texas, which previously filed a separate lawsuit in 2024.

Settlement Terms and Privacy Changes

Under the terms of the consent decree, General Motors must implement several operational changes and compliance measures:

• Establish a comprehensive data privacy program to limit and protect collected driver information.
• Undergo mandatory internal and external data privacy protection assessments.
• Implement new oversight and dealership training requirements.
• Obtain affirmative express consent from consumers before collecting or sharing driver data.

Earlier legal and regulatory actions include a January 2025 ban by the US Federal Trade Commission preventing the automaker from selling sensitive driver data, as well as a separate $12.75 million settlement with California earlier in the year. GM previously severed ties with data brokers LexisNexis and Verisk following media reports regarding data sharing.

Practical Implications and Verification

Drivers concerned about their data privacy can review official announcements and press releases directly through the Washington Office of the Attorney General or state consumer protection websites. Consumers should monitor their vehicle settings, connected services apps like OnStar, and insurance policies to understand data collection practices and consent settings.