GM to Pay $220 Million After Betraying Their Own Drivers’ Privacy

General Motors has agreed to pay $220 million to resolve claims that it unlawfully sold drivers' private behavior and location data to brokers, who subsequently sold the information to insurers for the purpose of setting and potentially increasing insurance rates. This settlement, announced on Thursday, addresses allegations brought by the attorneys general of 35 US states and the District of Columbia regarding GM's Smart Driver program, which enrolled millions of drivers between 2016 and its cessation in 2024.

Regulatory bodies have also scrutinized GM's management of driver data. The automaker had misrepresented the Smart Driver initiative as a means to enhance personal driving safety, but it breached drivers' privacy by failing to honor its promise not to sell their data without consent. Many individuals who enrolled in the program were also automatically signed up for GM's OnStar safety, navigation, and diagnostic service.

The headline in Reuters' report was "GM to Pay $220 Million to Settle Allegations It Violated Drivers’ Privacy". This was not just an allegation; it was an indisputable breach of their customers' trust. Despite having driven a few GM rentals recently, the likelihood of purchasing any of their vehicles in the future is unlikely, given their subpar design and untrustworthiness.

GM's continued promotion of CarPlay and their transgression of customer privacy continue to tarnish their reputation.