GM Agrees to $12.75 Million Settlement Over Driver Data Sales

General Motors agreed to pay California $12.75 million in civil penalties after the state accused the company of selling drivers’ location and driving behavior data to third-party data brokers.

The proposed settlement also bars GM from selling driving data to consumer reporting agencies for five years and requires the deletion of previously collected information.

California settlement targets GM data sales and privacy practices

California said GM sold “the names, contact information, geolocation data, and driving behavior data of hundreds of thousands of Californians” through its OnStar connected vehicle system. The state launched its investigation after a 2024 report by The New York Times detailed how automakers were sharing driver behavior data with insurance companies.

Under the settlement, which still requires court approval, GM must delete the data and request that LexisNexis Risk Solutions and Verisk Analytics do the same, according to Motor1.

A GM spokesperson said the agreement “addresses Smart Driver, a product we discontinued in 2024, and reinforces steps we’ve taken to strengthen our privacy practices.” The company added that “vehicle connectivity is central to a modern and safe driving experience,” while emphasizing the need for transparency and customer control over personal information.

California Attorney General Rob Bonta criticized the automaker’s handling of the data. “General Motors sold the data of California drivers without their knowledge or consent and despite numerous statements reassuring drivers that it would not do so,” he said. He added that the information included “precise and personal location data that could identify the everyday habits and movements of Californians.”

GM faces broader scrutiny over connected vehicle data collection

California determined that insurance premiums for residents were not affected because state law prohibits insurers from using driving behavior data to set rates.

The settlement follows a broader wave of investigations into GM’s data collection practices. Texas sued the automaker in 2024, while Nebraska, Indiana, and Arkansas also opened investigations into the company’s privacy policies.

Earlier this year, the Federal Trade Commission banned GM from selling sensitive driving data for five years. The federal agreement also required the automaker to obtain “affirmative customer consent” before collecting, using, or disclosing certain connected vehicle information.

According to California officials, GM generated approximately $20 million nationwide from selling driver data to LexisNexis and Verisk.

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