GM to pay $220 million after selling customer Smart Driver data
Owners of GM cars found their driving data had been sold to insurance companies.
General Motors (GM) has agreed to pay $220 million after it was discovered that the company shared customer Smart Driver data with third-party brokers, who subsequently sold the information to insurance companies. This practice led to increased insurance premiums for numerous drivers who were unaware they had consented to such data sharing.
In 2024, GM and its OnStar subsidiary faced legal action from the Federal Trade Commission (FTC), which resulted in a settlement last year. The settlement barred GM and OnStar from sharing geolocation or driver behavior data with third parties for five years and prompted the discontinuation of the Smart Driver system across all GM vehicles.
The automaker has now settled with the District of Columbia and 35 states following a joint lawsuit by their respective attorneys general.
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