General Motors has agreed to a $220 million settlement with 35 states and the District of Columbia after allegations that it sold vehicle data to insurance companies without informing drivers.
The states involved in the lawsuit said the information came from GM’s Smart Driver and OnStar systems. Tech expert Omar Gallaga noted that Texas Attorney General Ken Paxton filed a separate, similar case on his own.
Highlights from this segment:
– A New York Times investigation found that GM vehicles were gathering large amounts of data, like many automakers do, and that the company sold some of it to insurers, who then used it to help justify higher rates.
– Under the multistate settlement, GM also agreed not to collect driver data in this manner for five years. The settlement funds will go to the states that brought the case.
– Texas’ lawsuit against GM is still pending.
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