General Motors has agreed to pay $220 million to resolve a lawsuit brought by the District of Columbia and 35 state attorneys general. The legal action followed revelations that the automaker shared customer data from its Smart Driver system with brokers, who subsequently sold the information to insurance companies.
The Smart Driver Controversy
General Motors originally promoted its Smart Driver platform to help adults monitor their driving habits or assist parents in watching over teenage drivers. However, investigations in 2024 revealed that the company was transferring that collected information to data brokers. Insurance companies bought this data from the brokers, leading some motorists to experience unexpected rate increases. Additionally, numerous motorists reported that they never knowingly consented to share their driving information for commercial or insurance purposes.
Following these events, General Motors and its OnStar subsidiary reached an agreement with the Federal Trade Commission, which was finalized in January. That deal barred both entities from sharing driver behavior or geolocation details with outside parties for a five-year period. Around the same time, General Motors completely shut down the Smart Driver feature across its vehicle lineup.
State Settlement Terms
Following the FTC agreement, a coalition of state attorneys general pursued their own legal action against the automaker, culminating in the current $220 million financial resolution.
In an official statement, General Motors expressed that “[s]afer, 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.”
As reported by TechCrunch, a distinct aspect of this state-level agreement requires an independent third party to evaluate and verify General Motors’ adherence to the updated privacy program.
