GM to pay $220 million to resolve claims it sold driving habits data
General Motors has agreed to pay $220 million to settle claims that it illegally sold driver and location information to data brokers, as reported earlier by Reuters. The agreement, which resolves a complaint from a coalition of 36 US attorneys general, requires GM to limit the driving data it collects and obtain "express consent" from […]
In a settlement that resolves claims against General Motors, the automaker has agreed to pay $220 million. The agreement, reached with 36 state attorneys general, also mandates GM to restrict the amount of data it collects. The controversy centers on GM's now-defunct Smart Driver program, which gathered information on driving habits, including acceleration, braking, and trip distance.
This data was allegedly sold to data brokers, who then passed it on to insurance companies, enabling them to hike premiums based on driving patterns. Furthermore, GM failed to inform drivers about their enrollment in the program or the fact that their data was being collected. The states accused GM of selling information it had no right to share, and some drivers were forced to endure increased insurance costs as a result.
Notable state attorneys general involved in the case include Oregon's Dan Rayfield, Washington's Nick Brown, New York's Tina R. Chen, Florida's Pam Bondi, Michigan's Dana Nessel, Nevada's Aaron Ford, and Pennsylvania's Jose Cosio. Attorney General Rayfield emphasized that people purchased automobiles not tracking devices and criticized GM for its deceptive practices.
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