GM pays $12.75M in California driver privacy settlement
Original: GM agrees to pay $12.75M in California driver privacy settlement
Why This Matters
Highlights growing regulatory scrutiny over automotive data privacy practices
General Motors agreed to pay $12.75 million to settle allegations it sold driving data of hundreds of thousands of Californians to data brokers Verisk Analytics and LexisNexis Risk Solutions without consent through its OnStar program.
California Attorney General Rob Bonta announced the settlement after alleging GM sold names, contact information, geolocation data, and driving behavior data of hundreds of thousands of Californians to data brokers. The data was collected through GM's OnStar program, generating approximately $20 million in revenue for the company. Under the settlement, GM must stop selling driving data to consumer reporting agencies for five years and delete retained driver data within 180 days unless customer consent is obtained. GM must also request that Lexis and Verisk delete the data. The settlement follows a 2024 New York Times report about automakers sharing customer driving behavior with insurance companies. GM previously settled with the FTC over similar data sales practices and discontinued its Smart Driver product in 2024.