Overview

General Motors has reached a settlement of $12.5 million in response to allegations that it unlawfully sold the location and driving data of numerous California drivers. This settlement highlights the increasing scrutiny faced by automakers regarding their handling of driver data.

California officials have emphasized the importance of consumer privacy, particularly as the state has laws prohibiting insurers from using driving data to determine rates. The settlement represents the largest penalty under the California Consumer Privacy Act to date.

Key details

  • General Motors will pay $12.5 million to settle claims of illegally selling driver data.
  • The data in question includes names, contact information, location data, and driving behavior.
  • The allegations involve data sold to data brokers Verisk Analytics Inc. and LexisNexis Risk Solutions.
  • The data was collected from the OnStar service, which GM owns.
  • The OnStar Smart Driver product, which was discontinued in 2024, was linked to the data sales.
  • California Attorney General Rob Bonta stated the settlement reflects the state's commitment to consumer data privacy.
  • California law prohibits insurers from using driving data to set insurance rates.
  • The investigation involved various district attorneys, including those from Los Angeles and San Francisco.
  • GM has stated it will enhance privacy controls following the settlement.
  • The company ended its partnership with the data brokers in 2024.
  • The settlement is a significant action against the misuse of consumer data in the automotive industry.
  • GM aims to maintain transparency with customers regarding data practices.

Context

This settlement illustrates a growing concern over how companies, particularly in the automotive sector, manage and share consumer data, especially in light of legal frameworks designed to protect privacy.

What happens next

Following the settlement, General Motors is expected to implement enhanced privacy measures and maintain transparency with its customers regarding data collection and sharing practices.

What we don't know yet

Details regarding the specific terms of the settlement and the exact number of affected drivers have not been confirmed.