GM cracks the petty cash box for multistate driver tracking settlement

General Motors (GM) has been fined $220 million by a coalition of 35 states and the District of Columbia for collecting and selling driver data without consent. The settlement affects precise location information, speed, seatbelt use, and other metrics. GM sold this data to brokers who then supplied it to insurance companies for setting premiums.

This practice came to light after a 2024 New York Times investigation, despite GM's Smart Driver program claiming to inform better driving habits without sharing data with insurers without consent. GM canceled the program in April 2024 after the investigation, citing customer feedback. The settlement, which is less than 7% of GM's third quarter net income, will be distributed among the jurisdictions.

GM also agreed to limit data collection, improve customer PII protection, and establish a comprehensive data privacy program. The state of California reached a $12.75 million settlement separately, while a case in Texas remains ongoing. GM maintains that driver data collection is a best practice, emphasizing transparency and customer choices.