GM to pay $220m to settle connected car data claims with 36 states
General Motors has agreed to pay $220 million to 36 state and district attorneys general to settle allegations that it collected drivers’ data without proper consent and sold it through brokers to insurers. The case highlights how connected-car information, including location and driving behaviour, can affect insurance decisions, and raises questions about whether customers understood how their data was being used.
Investigators said GM’s Smart Driver programme gathered precise location, speed, seatbelt use and other information, while some drivers were enrolled without their knowledge. The OnStar app incorrectly told more than 370,000 drivers they were not enrolled, even as their data was collected and sold. GM ended the programme in April 2024 and has agreed to limit data collection, protect personal information and establish a privacy programme; the $220 million will be shared among the participating jurisdictions.
In short
- GM will pay $220 million to settle driver data allegations.
- Investigators say data was sold to insurers through brokers.
- More than 370,000 drivers were wrongly told they were not enrolled.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
State officials can argue that drivers deserve clear, accurate consent before sensitive location and driving data is collected or shared, especially when it may affect insurance decisions. The reported app errors and alleged enrolment without drivers’ knowledge suggest existing safeguards did not give many customers meaningful control, making a substantial settlement and stronger privacy rules a reasonable way to protect consumers and deter similar practices.
The case against
A reasonable counterargument is that connected-car data can support useful services and, when drivers knowingly opt in, may help insurers assess risk more precisely and offer pricing that reflects driving behaviour. Critics of the settlement could also argue that allegations and a negotiated payment do not establish every claim, and that regulation should distinguish deceptive enrolment or inaccurate disclosures from legitimate, consent-based data use so that useful services are not unduly restricted.
Explained simply
Modern cars can collect information through built-in internet connections and apps. General Motors’ OnStar services include Smart Driver, a programme that recorded details such as location and driving behaviour.
Insurance companies may use information about driving when setting prices or assessing risk, sometimes obtaining it through data brokers. The case has raised questions about whether drivers knew what was collected, who could receive it and how it might affect them.
State attorneys general investigate and bring legal cases on behalf of their jurisdictions. The settlement concerns GM’s handling of drivers’ information and the safeguards companies should use when collecting and sharing data from connected cars.
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Originally published by The Register as “GM cracks the petty cash box for multistate driver tracking settlement”.