General Motors has agreed to pay $220 million to resolve claims that it illegally sold driver and location information to data brokers, in a settlement with a coalition of 36 US attorneys general.
The agreement, reported earlier by Reuters, requires GM to limit the driving data it collects and obtain "express consent" from drivers before collecting their information.
The allegations centre on GM's now-discontinued Smart Driver program. The program collected data about driving habits including acceleration, braking and trip length. GM allegedly passed this information to data brokers, enabling insurance companies to purchase the data and raise premiums. The states also accused GM of failing to notify drivers they were enrolled in the program and that the carmaker was collecting their data.
Oregon Attorney General Dan Rayfield and Washington Attorney General Nick Brown co-led the case. The case also included New York, Florida, Michigan, Nevada and Pennsylvania.
"People bought a car, not a tracking device," Rayfield said in a press release. "GM told drivers this program would help them drive more safely and promised it wouldn't share their data with insurers without permission. Our investigation found GM sold that data anyway, and some drivers paid for it with higher premiums."
The settlement comes months after GM agreed to pay $12.75 million to settle similar claims in California.
Analysis
Why This Matters
- The settlement affects millions of GM drivers whose driving data may have been sold without their knowledge, potentially leading to higher insurance premiums.
- It signals that US states are aggressively pursuing automakers over connected-vehicle data practices, which could reshape how car companies handle driver information.
- The requirement for express consent sets a precedent for data collection in vehicles, affecting consumer privacy rights.
Background
The Smart Driver program was marketed as a way to help drivers improve their safety, but states allege GM collected detailed driving data and sold it to data brokers without proper disclosure. Insurance companies then used the data to raise premiums. GM has now discontinued the program. The settlement follows a smaller $12.75 million settlement in California earlier this year.
What to Watch
- Whether other automakers face similar enforcement actions over connected-vehicle data practices.
- How GM implements the required consent mechanism and whether affected drivers receive notification.
- Potential federal privacy legislation that could set uniform standards for vehicle data collection.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedGM agreed to pay $220 million to resolve claims that it illegally sold driver and location information to data brokers.The Verge: “General Motors has agreed to pay $220 million to settle claims that it illegally sold driver and location information to data brokers”
- SupportedThe settlement resolves a complaint from a coalition of 36 US attorneys general.The Verge: “The agreement, which resolves a complaint from a coalition of 36 US attorneys general”
- SupportedThe settlement requires GM to limit the driving data it collects.The Verge: “requires GM to limit the driving data it collects”
- SupportedThe settlement requires GM to obtain express consent from drivers before collecting their information.The Verge: “obtain “express consent” from drivers before collecting their information”
- SupportedReuters reported the agreement earlier.The Verge: “as reported earlier by Reuters”
- SupportedGM's now-discontinued Smart Driver program collected driving-habit data, including acceleration, braking and trip length.The Verge: “The allegations surround GM’s now-discontinued Smart Driver program, which collected data about driving habits, including acceleration, braking, and trip length.”
- SupportedGM allegedly passed the information to data brokers, enabling insurance companies to purchase it and raise premiums.The Verge: “GM allegedly passed this information to data brokers, enabling insurance companies to purchase the data and raise premiums.”
- SupportedThe states accused GM of failing to notify drivers that they were enrolled in Smart Driver and that GM was collecting their data.The Verge: “The states also accused GM of failing to notify drivers that they were enrolled in its Smart Driver program, and that the carmaker was collecting their data.”
- SupportedOregon Attorney General Dan Rayfield and Washington Attorney General Nick Brown co-led the case.The Verge: “Oregon AG Dan Rayfield and Washington AG Nick Brown co-led the states’ case against GM”
- SupportedRayfield said in a press release, “People bought a car, not a tracking device.”The Verge: ““People bought a car, not a tracking device,” Rayfield says in a press release.”
- SupportedRayfield said GM told drivers Smart Driver would help them drive more safely, promised not to share their data with insurers without permission, and that the investigation found GM sold the data anyway, with some drivers paying higher premiums.The Verge: ““GM told drivers this program would help them drive more safely and promised it wouldn’t share their data with insurers without permission. Our investigation found GM sold that data anyway, and some drivers paid for it with higher premiums.””
- SupportedMonths after the settlement, GM had agreed to pay $12.75 million to settle similar claims in California.The Verge: “This settlement comes just months after GM agreed to pay $12.75 million to settle similar claims in California.”
