GM pays $220 million over illegal driver data sales

General Motors has agreed to pay $220 million to 36 states after a probe found it sold driver data collected through its OnStar program without consent. The settlement follows an investigation that revealed the company had sold data to brokers while customers were unaware.

The data came from the Smart Driver program, which let users earn insurance discounts by sharing driving habits. More than 370,000 drivers were told they were not enrolled, but the company kept collecting and selling their data to brokers. That data included locations, how many times drivers used their cars, how long each trip lasted, and braking and acceleration habits. Insurance companies also received the information, and some drivers' rates were raised.

How the data was collected and sold

Washington will receive $12.3 million, Oregon $10.4 million, Michigan $7.2 million and New York more than $12 million, with the remainder distributed among other participating states.

Under the settlement, GM must limit the driving data it can collect, obtain drivers' permission before sharing that data, and put in place oversight and training for dealership staff. External reviewers will monitor compliance.

GM shut down the Smart Driver program in 2024 after customers raised trust and privacy concerns. The New York Times had published exposés on the data scheme, including claims that GM colluded with insurers to raise premiums.