General Motors agreed to pay $220 million to resolve allegations that it illegally sold driver and location information to data brokers, as previously reported. Reuters. The settlement, which resolves a complaint from a coalition of 36 U.S. attorneys general, requires GM to limit the driving data it collects and obtain the “express consent” of drivers before collecting their information.
The allegations surround GM’s now-discontinued Smart Driver program, which collected data on driving habits, including acceleration, braking and trip duration. GM allegedly passed this information to data brokers, allowing insurance companies to purchase the data and increase premiums. The states also accused GM of failing to notify drivers that they were enrolled in its Smart Driver program and that the automaker was collecting their data.
“This agreement addresses Smart Driver, a product we finalize in 2024, and reinforces the steps we have taken to strengthen our privacy practices,” GM spokeswoman Charlotte McCoy said in a statement emailed to The edge. “Data from connected vehicles enables safer, more useful and personalized experiences, and GM is committed to being clear about what information is used, how it is protected and the choices customers have about what they share.”
This settlement comes just months after GM agreed to pay $12.75 million to resolve similar claims in California. Oregon Attorney General Dan Rayfield and Washington Attorney General Nick Brown co-led the states’ case against GM, which also included New York, Florida, Michigan, Nevada, Pennsylvania and many others.
“People were buying a car, not a tracking device,” Rayfield says in a press release. “GM told drivers that this program would help them drive safer and promised that it would not share their data with insurers without permission. Our investigation found that GM sold that data anyway, and some drivers paid for it with higher premiums.”
Update, October 29: Added a statement from GM.
