GM to pay $220 million over claims it violated drivers' privacy

By Jonathan Stempel

General Motors will pay $220 million to resolve allegations that it unlawfully sold drivers' private behavior and location data to brokers, who then passed the information to insurers that used it to set and sometimes raise rates.

The settlement, announced on Thursday, settles claims by attorneys general from 35 U.S. states and the District of Columbia over the automaker's Smart Driver program, which enrolled millions of drivers between 2016 and its end in 2024. Other regulators have also examined GM's handling of driver data.

GM was accused of promoting Smart Driver as a tool to help people improve their driving safety while violating privacy by breaking its promise not to sell data without permission. Many customers who signed up were also enrolled in GM's OnStar safety, navigation and diagnostic service.

"People bought a car, not a tracking device," Oregon Attorney General Dan Rayfield said in a statement. Rayfield's office and the office of Washington Attorney General Nick Brown led the bipartisan state coalition.

The agreement also requires GM to restrict the driving data it collects and to secure drivers' express consent before collecting or sharing that information.

A GM spokesperson said the settlement reinforces other steps the Detroit automaker has taken to strengthen privacy.

"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.

Insurers including Allstate, Progressive and Berkshire Hathaway's Geico use telematics to monitor drivers' habits. They say the technology rewards good driving with lower premiums.

The settlement comes after GM agreed in May to pay $12.75 million to resolve a California investigation into its alleged sale of driver data to two data brokers.

In January 2025, GM agreed with the U.S. Federal Trade Commission not to disclose vehicle geolocation and driver behavior data to consumer reporting agencies for five years.

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