GM Reaches $220 Million Settlement Over Selling Drivers' Private Data
An anonymous reader quotes a report from TechCrunch: General Motors will pay $220 million to 36 states to settle allegations that it illegally sold private driving behavior and location information to data brokers. As part of the settlement, GM must get drivers' express consent before it collects or shares their driving and location data -- terms that are in line with separate agreements it…
General Motors has agreed to a $220 million settlement with 36 states to resolve claims it illegally sold private driving and location data to data brokers. Under the agreement, GM must now obtain drivers' explicit consent before collecting or sharing their data. This requirement aligns with earlier settlements with California and the Federal Trade Commission (FTC).
The settlement also mandates that GM have an independent third party evaluate the company's compliance with its newly implemented privacy program. The agreement pertains to the company's terminated "Smart Driver" service, which ended in 2024, and reaffirms GM's commitment to enhancing its privacy practices. The settlement follows a New York Times report exposing how GM and OnStar collected, utilized, and profited from drivers' real-time location data and driving behavior, which was then sold to third parties like data brokers LexisNexis and Verisk.
This data was gathered via GM's free Smart Driver program, which monitored and rated drivers' behaviors and seat belt usage. The information was then sold to insurance companies, potentially impacting policyholders' premiums, according to the report.
Written by urgent.news from Slashdot's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
