General Motors will pay $220 million to resolve claims by 36 US states that it sold driving data without driver consent, connected to its now-discontinued Smart Driver program.
- GM paid $220 million to settle multi-state lawsuit over data sales.
- States say drivers were not informed or asked for consent.
- Agreement enforces stricter data collection and consent protocols.
What happened
General Motors agreed to a $220 million settlement with a coalition of 36 US attorneys general after accusations that it sold data on driving habits to data brokers without sufficient disclosure or consent. The data was collected through GM’s Smart Driver program, which tracked metrics like acceleration, braking, and trip length before being discontinued in 2024.
States alleged that GM failed to notify drivers of their enrollment in the program and shared sensitive driving data with insurers, potentially leading to increased insurance premiums. The settlement strengthens GM’s obligations to limit data collection and require explicit driver consent going forward.
Why it matters
This settlement highlights growing concerns over privacy and consent in the automotive industry as vehicles become increasingly connected and capable of extensive data collection. Consumers may not be fully aware of how their driving behavior data is used or shared, especially when it can influence insurance and financial outcomes.
For automakers, the case underscores the legal and reputational risks of opaque data practices. GM’s experience may prompt competitors to re-evaluate privacy programs and data-sharing policies to avoid similar litigation and regulatory scrutiny.
What to watch next
Industry observers should monitor how other automakers respond to evolving privacy expectations and whether state or federal regulators introduce new frameworks to govern connected vehicle data. GM’s settlement may serve as a model for enforcing stricter data consent requirements across the sector.
Additionally, affected insurers and data brokers might face increased pressure to justify their access to driver data and prove transparent, ethical use. Consumers and advocacy groups are likely to intensify calls for clearer disclosures on how driving data affects insurance pricing and privacy.