GM reaches $220M settlement over selling drivers’ private data
General Motors will pay $220 million to settle allegations from 36 states that it illegally sold drivers’ location and driving behaviour data to brokers, which then supplied it to insurers. The agreement requires GM to obtain drivers’ express consent before collecting or sharing this information and adds independent checks on the company’s privacy programme.
The case concerned Smart Driver, a feature in GM’s connected car apps that tracked and rated driving habits and seatbelt use; GM ended the programme in 2024. The settlement follows a January Federal Trade Commission order restricting GM and OnStar from sharing certain consumer data. GM says it will no longer sell vehicle information linked to individuals, locations or driving, though it may share anonymised data with some partners.
In short
- GM will pay $220 million to 36 states.
- Drivers must give express consent for certain data collection and sharing.
- An independent party will assess GM’s privacy compliance.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
States can argue that location and driving records are highly sensitive, and that people should not face insurance consequences from data gathered through connected-car features without clear, informed consent. The settlement’s consent requirements and independent checks may help restore trust and set a meaningful standard for companies collecting such information.
The case against
A reasonable concern is that a large settlement and strict limits on data sharing could constrain useful connected-car services and legitimate, privacy-protected research or safety work. GM says it will stop selling identifiable vehicle information while retaining the ability to share anonymised data, and companies may argue that clear consent and safeguards should address the harms without broadly limiting those uses.
Explained simply
Connected cars can collect information about where a vehicle goes and how it is driven. General Motors, which makes brands including Chevrolet and Cadillac, offered a feature called Smart Driver through its car apps; it recorded driving habits and seatbelt use.
GM’s OnStar service provides connected car features such as navigation and emergency help. Data from Smart Driver was shared with brokers that supplied information to insurers, raising questions about whether drivers had clearly agreed to that use and how it could affect their privacy.