GM Agrees to $220 Million Settlement Over Sales of Drivers’ Location and Behavior Data

General Motors agreed to pay $220 million in a multistate settlement over allegations that it unlawfully sold drivers’ location and driving behavior data through its Smart Driver program. Data brokers allegedly resold the information to insurers, and some drivers reported higher insurance costs despite saying they had not knowingly consented to that use. State attorneys general alleged that the disclosures contradicted GM’s assurances that it would not provide insurers with customer data without affirmative consent. Smart Driver operated from 2016 until GM discontinued it in 2024 following reporting by The New York Times.

The settlement requires affirmative express consent before collecting or sharing driving behavior and location data, data minimization, stronger privacy safeguards, improved dealership oversight, and an independent assessment of compliance with GM’s privacy policy. It follows a separate FTC settlement with GM and OnStar, finalized in January, that prohibits sharing geolocation and driver behavior data with third parties for five years. A separate lawsuit brought by Texas Attorney General Ken Paxton remains ongoing. The agreements underscore the need for connected-vehicle operators to govern downstream data sharing and verify that consent practices match privacy commitments.