General Motors will pay $220 million to settle claims that it sold customer Smart Driver data to brokers who then passed it to insurance companies. The automaker marketed Smart Driver as a tool for parents to monitor teen drivers or for adults to track their own driving behavior. In 2024, it emerged that GM had been sharing that data with brokers, and some drivers found their insurance became more expensive as a result. Many drivers claimed they never agreed to share such data.
GM and its OnStar subsidiary entered an FTC settlement last year, finalized in January, banning them from sharing geolocation or driver behavior data with third parties for five years. GM also discontinued Smart Driver across its entire range. Now the automaker has reached terms with the District of Columbia and 35 states after their attorneys general joined together to sue GM.
According to Tech Crunch, the settlement with the states is notable because a third party will be required to verify GM's compliance with its privacy policy rather than taking GM's word. GM told Reuters it is committed to being clear about what information is used, how it's protected, and the choices customers have about what they share.
Source: Ars Technica · Summarized by HeadlinesBriefing