GM Reaches $220 Million Deal Over Alleged Sale of Driver Data

As growing numbers of car buyers demand stronger privacy protections, General Motors has agreed to a major settlement over claims tied to its driving-data practices.

More than two years after The New York Times reported that automakers were selling sensitive driving information to insurance brokers, GM has agreed to pay $220 million to resolve allegations and lawsuits over what critics say were deceptive practices.

Millions of U.S. drivers who used GM vehicles and signed up for the OnStar Smart Driver feature between 2016 and 2024 were told the service would help improve their driving and would not sell their data. But many were unaware that the system was quietly gathering precise location and driving-behavior information, then selling it to major data brokers such as LexisNexis and Verisk. The information reportedly included hard braking, speeding, and late-night driving patterns.

After being collected and sold, the data could be used to build credit-related reports on drivers. In some cases, insurers used it to price policies or even refuse coverage. Soon after the original reporting emerged, GM ended its agreements with LexisNexis and Verisk. The company still faced pressure later on: the Federal Trade Commission imposed a five-year ban on sharing geolocation and driver-behavior data with consumer reporting agencies, and required GM to get clear consent before collecting connected vehicle data while giving owners the option to turn off precise geolocation and driving-behavior tracking.

Dealers were allegedly pushed to enroll customers in OnStar

Under the new agreement, GM will pay $220 million to settle claims brought by attorneys general from 36 states, with Washington State leading the case. In a statement to Reuters, a GM spokesperson said the company has improved privacy protections in the system. “Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it’s protected, and the choices customers have about what they share,” the spokesperson said.

Washington State Attorney General Nick Brown says many drivers were enrolled in Smart Driver automatically when they subscribed to GM’s OnStar services. He also alleges that some dealership employees accepted the program’s terms and conditions on customers’ behalf without their permission. In addition, GM is accused of heavily encouraging dealerships to sign people up for OnStar, with employees receiving bonuses based on the number of customers they persuaded to join the connected-services program.

According to the allegations, GM’s OnStar app also told 370,000 drivers that they were not enrolled in Smart Driver even though they were, and that their data was being sold. After GM removed those drivers from the program without notice, data brokers and insurers allegedly kept the sensitive driving information.