GM agrees $220m settlement over sharing drivers’ data with brokers
GM has agreed to pay $220 million to settle claims brought by the District of Columbia and 35 states over its sharing of drivers’ data. The case matters because information collected through Smart Driver was passed to brokers and then sold to insurers, with some drivers reporting higher premiums and saying they had not knowingly consented to that use.
GM promoted Smart Driver as a way to monitor young drivers or track driving habits, but the data-sharing came to light in 2024. A separate settlement with the Federal Trade Commission, finalised in January, bars GM and OnStar from sharing geolocation and driver behaviour data with third parties for five years; GM also ended Smart Driver. Under the states’ settlement, an independent third party will assess whether GM is following its privacy policy.
In short
- GM will pay $220 million to settle data-sharing claims.
- Smart Driver information reached brokers and insurers.
- An independent reviewer will assess GM’s privacy compliance.
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The case for
States can argue that drivers deserve clear, informed consent before sensitive location and driving data is shared or sold, especially when a service is presented as a safety or monitoring tool. Reports that some drivers faced higher insurance premiums make accountability and independent oversight important, while the settlement may help rebuild trust in connected-car services.
The case against
GM could argue that collecting driving data can support useful services, such as helping families monitor young drivers, and that data sharing may have been intended to inform insurance decisions rather than harm customers. The settlement resolves the states’ claims without, on the information provided, establishing that every driver was misled or that the data sharing caused higher premiums; clear disclosures and safeguards may address the concerns while preserving useful data-based services.
Explained simply
General Motors (GM) is a car company, and OnStar is its connected-car service. Smart Driver was an optional programme that used information about people’s driving, including how they drove and where they went, and was presented as a way to track habits or monitor young drivers.
Companies called data brokers collect and sell information, which other businesses may use to assess customers. In this case, driving information was shared with brokers and then sold to insurers; some drivers said they had not knowingly agreed to this and reported higher premiums.
The case raises questions about how clearly drivers are told what happens to information collected by connected cars, and how that information can affect them. The settlements involve both state authorities and the US Federal Trade Commission, which oversees consumer protection.
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Originally published by Ars Technica as “GM to pay $220 million after selling customer Smart Driver data”.