General Motors has reached a $12.75 million settlement in a California lawsuit alleging it sold sensitive driver location and habit data to insurance firms and data brokers, prompting the automaker to curb data sharing and enhance privacy controls.
- GM pays $12.75 million to settle California data privacy suit
- Automaker stops selling driver data to brokers for five years
- OnStar users gain control over location data collection
What happened
General Motors agreed to pay $12.75 million to settle a California lawsuit accusing the company of selling driving habit and location data to insurance companies and data brokers. The suit came after a 2024 investigative report revealed automakers, including GM, were sharing detailed driving behavior data such as speed, rapid acceleration, and hard braking.
As part of the settlement, GM committed to halting the sale of customer data to third parties for five years. The agreement also requires GM to provide clear privacy disclosures to California drivers enrolling in its OnStar service and give them the option to restrict location tracking. Data collected under the disputed practices must be deleted, and GM must obtain explicit consent before collecting or using similar data going forward.
Why it matters
This settlement highlights growing scrutiny over how automakers handle sensitive driver data and the risks of sharing it with third parties like insurers who use it to adjust premiums. The case follows federal action by the FTC that imposed similar restrictions on GM and its OnStar subsidiary earlier this year.
The ruling reinforces California’s data privacy standards, especially the principle of data minimization which prevents companies from storing and repurposing customer data without consent. It sets a precedent compelling automakers to improve transparency and control measures in connected vehicle technologies, reflecting mounting consumer and regulatory demand for stronger privacy protections.
What to watch next
Industry observers will monitor how GM implements these new privacy controls and whether other automakers will face similar legal challenges or proactively revise data practices. The case may influence broader regulatory initiatives focused on connected car data privacy across different states and at the federal level.
Consumers will likely see more emphasis on consent mechanisms and clearer communication from automakers regarding data collection and usage tied to vehicle connectivity services like OnStar. The unfolding legal landscape will also drive innovation in privacy-enhancing technologies and policies aimed at balancing the benefits of connected vehicle data with user rights and protections.