General Motors has agreed to pay $220 million to settle a multi-state lawsuit over its OnStar Smart Driver program, which collected and sold driver data without proper consent from 2016 through 2024. The settlement resolves claims brought by attorneys general from 35 US states and the District of Columbia.
The New York Times reported in 2024 that GM enrolled millions of customers in the Smart Driver program, tracking behaviors such as hard braking, late-night driving, and speeding. The automaker then sold this data to insurance companies, leading to increased premiums for some drivers. Many customers were unaware they had been enrolled, and some dealerships allegedly accepted program terms without explicit permission.
More than 370,000 drivers were incorrectly told they were not enrolled, yet GM continued collecting and selling their data. The attorneys general described the data as personal, identifiable, and specific. Under the settlement, GM must limit data collection, implement privacy protection programs, and undergo regular assessments.
Earlier this year, the Federal Trade Commission banned GM from sharing specific consumer data with third parties for five years. In May, GM also settled with California for $12.75 million related to the same issue.
Source: Engadget · Summarized by HeadlinesBriefing