Settlement Overview
The automaker sold driver data to insurance companies without permission from 2016 through 2024.
Settlement Overview
The states that sued General Motors over the OnStar Smart Driver program have settled with the company. GM has agreed to pay $220 million to resolve the lawsuit brought by the attorneys general of 35 US states and the District of Columbia.
Data Collection Practices
Reports highlighted that GM had enrolled millions of customers in its Smart Driver program from 2016 through 2024 to track driving habits. The automaker used the system to log hard braking, rapid acceleration, and speeding, subsequently sharing information with data brokers. This data contributed to higher insurance premiums for affected drivers.
Data Collection Practices
Attorneys general stated that GM failed to inform customers that their data would be monetized in this manner, with many drivers unaware of their enrollment. Dealerships were reportedly incentivized with bonuses to register customers, occasionally accepting terms and conditions on their behalf without explicit consent.
Consumer Impact
Furthermore, over 370,000 drivers were incorrectly informed they were not enrolled when they actually were. Although GM eventually unenrolled them, the company did not disclose the error and continued selling their information, which investigators described as personal, identifiable, and specific.
Under the terms of the settlement, GM must restrict the amount of driving data it collects and enhance safeguards for personal information moving forward. The company will also undergo mandated internal and external privacy program assessments, alongside additional staff training at dealerships. The Federal Trade Commission previously barred GM from sharing specific consumer data with third parties for five years, following a separate $12.75 million settlement with California.
