General Motors has agreed to pay $220 million to resolve allegations that it shared drivers’ personal information with data brokers without their consent. The settlement addresses claims involving the automaker’s connected vehicle technology and Smart Driver program, which collected information from millions of customers between 2016 and 2024.
GM Settlement Addresses Driver Privacy Allegations
The agreement, announced Thursday, is intended to resolve allegations that GM disclosed sensitive customer information without authorization. As many as 35 U.S. attorneys general accused the company of sharing data belonging to customers who enrolled in its Smart Driver program.
The program was promoted as a way to improve driving safety, and GM had promised to keep customer data private unless users permitted otherwise.
Many affected drivers had also signed up for OnStar, the company’s navigation, diagnostics and safety service, without expecting their personal information to be shared in ways that could affect them.
The $220 million settlement resolves the allegations involving the company’s handling of driver data.
How Driver Information Was Used
Information collected through connected vehicle technology was allegedly passed to data brokers, which then sold it to insurance companies. The data was used to set or increase insurance rates based on factors including driver behavior.
The allegations sparked backlash after the company’s data-sharing practices came to light, raising concerns about how information gathered through connected vehicle services could be used without drivers’ knowledge or approval.
GM Responds to the Settlement
Following the settlement announcement on October 29, a GM spokesperson said connected vehicle data can support safer, more helpful and personalized experiences.
“GM is committed to being clear about what information is used, how it’s protected, and the choices customers have about what they share,” the spokesperson said.
The settlement brings the allegations over GM’s driver data practices to a resolution, with the company agreeing to pay $220 million over claims involving customer privacy and information shared through its connected vehicle programs.
