General Motors has agreed to pay $220 million to resolve allegations that it illegally sold driver and location information to data brokers. The settlement addresses a complaint brought by a coalition of 36 US attorneys general and mandates that GM restrict its driving data collection while securing clear consent from motorists moving forward.
The Smart Driver Program Controversy
The legal action centers on GM’s discontinued Smart Driver program, which gathered metrics on driving habits such as acceleration, braking speed, and overall trip lengths. The automaker allegedly transferred this information to data brokers, allowing insurance companies to buy the data and subsequently increase drivers’ insurance premiums. Additionally, the states claimed that GM failed to inform motorists that they were automatically enrolled in the program or that their driving data was being gathered.
According to The Verge, GM spokesperson Charlotte McCoy stated in an emailed statement that the agreement targets a product the company phased out in 2024 while reinforcing recent enhancements to its privacy protocols. McCoy added that connected vehicle data enables safer and more personalized experiences, and the company remains dedicated to transparency regarding data usage, protection, and customer choices.
State Leadership and Previous Settlements
Oregon Attorney General Dan Rayfield and Washington Attorney General Nick Brown spearheaded the multistate case against GM, with participation from numerous other states including New York, Florida, Michigan, Nevada, and Pennsylvania. Rayfield criticized the practice, stating that purchasers bought vehicles rather than tracking devices, and noted that the company broke promises not to share information with insurers without explicit permission.
This financial agreement follows a separate $12.75 million settlement reached in California addressing similar allegations.
GM concluded its Smart Driver program in 2024.
