GM to pay $220 million to settle claims it sold drivers' data without consent

In brief

• General Motors will pay $220 million to settle allegations that it sold driving behavior and location data to brokers without drivers' consent.
• The case was brought by attorneys general from 35 states and the District of Columbia over the Smart Driver program, which ran from 2016 to 2024.
• The settlement requires GM to obtain express consent before collecting or sharing driving and location data and to limit what it collects.
• GM had already settled with the Federal Trade Commission and California over similar privacy issues.

Smart Driver data settlement

GM will pay $220 million to end allegations that it unlawfully sold private information about driving and location to brokers (GM to pay $220 million after selling customer Smart Driver data – Ars Technica) (GM reaches $220M settlement over selling drivers’ private data – TechCrunch) (GM to pay $220 million to resolve claims it sold driving habits data – The Verge) (GM to pay $220 million to settle allegations it violated drivers’ privacy – Investing.com). The settlement covers claims tied to the Smart Driver program, which collected data on acceleration, braking and trip length.

How data reached insurers

GM marketed Smart Driver as a tool for parents to monitor teen drivers and for adults to improve their own driving habits. According to the allegations, the company passed this data to brokers, who sold it to insurance companies. Some drivers said their premiums rose as a result, and many said they never agreed to share the information for that purpose.

Who brought the case

The settlement was announced on Thursday, October 29. According to prosecutors, the program affected millions of drivers from 2016 until it ended in 2024.

Terms of the agreement

Under the settlement, GM must obtain drivers' explicit consent before it collects or shares driving and location data. The company must also limit the scope of the driving data it collects. A new requirement obliges GM to have a third party assess its compliance with its own privacy program.

Earlier federal action

GM and its subsidiary OnStar had already reached a settlement with the Federal Trade Commission in 2025. That agreement barred them for five years from sharing certain driver data with third parties and was finalized in January. The company also reached similar terms with California. GM ended Smart Driver across its product line in 2024.

Company response

GM said the settlement concerns Smart Driver, a product discontinued in 2024, and reflects steps it has taken to tighten its privacy practices. The company said it wants to clearly inform customers about what data it uses and how it is protected.