General Motors Agrees to $220 Million Settlement Over Multi-State Data Privacy Lawsuit

General Motors has agreed to a $220 million settlement with 35 U.S. states and the District of Columbia following allegations that the automaker sold driver data to insurance companies without proper customer permission. The settlement concludes a multi-state lawsuit stemming from the company's OnStar Smart Driver program.

According to reports and statements from state attorneys general, the controversy centers on practices conducted between 2016 and 2024. During this period, the OnStar Smart Driver program tracked driving habits such as hard braking, speeding, and late-night driving.

Key Allegations and Findings

• Unauthorized Data Sharing: Attorneys general stated that GM sold collected driving data to data brokers for insurance purposes, leading to increased insurance premiums for affected drivers.
• Enrollment Practices: Investigators reported that many drivers were not informed they were enrolled in the program. Dealership employees allegedly accepted terms and conditions on behalf of customers without express permission, supported by dealership bonuses.
• Miscommunication: More than 370,000 drivers were incorrectly informed they were not enrolled when they actually were. Although GM eventually unenrolled them, officials stated the company failed to notify them of the error and continued selling their data.

Settlement Terms and Compliance

Under the terms of the settlement, GM faces strict operational requirements:

• The company must limit the collection of customer driving data and protect personal information.
• GM is subject to mandated internal and external data protection and privacy program assessments.
• Additional training and oversight will be implemented at dealerships.

Earlier actions related to the matter include a Federal Trade Commission ban preventing GM from sharing specific consumer data with third parties for five years, as well as a separate $12.75 million settlement with California.

Company Response

In a statement provided to Engadget, a GM spokesperson addressed the outcome: "This agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we've taken to strengthen our privacy practices. Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it's protected, and the choices customers have about what they share."

How to Verify

Readers and affected vehicle owners can verify official legal settlements, attorney general announcements, and regulatory actions by checking state department of justice websites or official Federal Trade Commission press releases.