General Motors agreed on October 29 to pay $220 million to settle claims from a coalition of 36 state attorneys general that it unlawfully sold customers’ location and driving-behavior data. The coalition was co-led by Washington Attorney General Nick Brown.
What the Attorneys General Allege GM Did With Driver Data
The attorneys general allege that GM sold location and driving-behavior data to data brokers, which resold it to insurers and affected customers’ premiums. The data came from GM’s Smart Driver and OnStar programs, and the case involves millions of customers.
The data included trip counts, start and end times, hard braking, fast acceleration and speeding.
Smart Driver Enrollment Pressure at GM Dealerships
According to the allegations, GM enrolled millions of customers in the Smart Driver program from 2016 through 2024, often through pressure at dealerships. Dealership staff allegedly received bonuses for enrollments. The New York Times exposed the practice in 2024.
Allegations of Misleading 370,000 Customers
The attorneys general say GM wrongly told more than 370,000 customers they were not being monitored. GM then secretly unenrolled them, they allege, without removing data that had already been sold. Customers who believed their driving was not tracked therefore had records that had already left the company.
GM’s Position on the Smart Driver Settlement
GM says it ended the product in 2024 and has strengthened its privacy practices. The settlement is an agreement to resolve the claims, and the reporting describes the conduct as allegations.
Settlement Requires Affirmative Express Consent
Beyond the $220 million penalty, the settlement terms require GM to get affirmative express consent before collecting or sharing driving and location data. That consent requirement changes the default from enrollment, often handled at the dealership, to a customer’s explicit agreement.
How GM Driver Data Reached Insurers and Premiums
The allegations connect the data trail to insurance. Brokers that bought the information resold it to insurers, and the attorneys general say it affected premiums. The reporting does not state the size of any premium changes or how many customers paid more as a result.
The settlement brings together 36 states in a single action, a number that reflects the national reach of GM’s connected-vehicle programs. The timeline covers eight years of alleged practices, from 2016 to 2024, before the public disclosure that ended them. What the reporting does not provide is the allocation of the $220 million among the states, any payments to affected customers, or the identities of the data brokers and insurers involved. Those details will shape how the settlement’s money and reforms reach the drivers whose data was sold.
Timeline of GM’s Smart Driver Program From 2016 to 2024
The attorneys general place the program’s run from 2016 through 2024, when the New York Times exposed the practice. GM says it ended the product in 2024, the same year as the exposure. The settlement announced on October 29 arrived two years later. Across that period the allegations describe three layers of conduct: enrollment, data sales and, later, unenrollment without deletion of data already sold.
Thirty-Six States Under One Settlement
The coalition of 36 state attorneys general was co-led by Washington Attorney General Nick Brown. The affected customers are millions of Smart Driver and OnStar users. In the attorneys general’s account, the information passed from GM to data brokers, who resold it to insurers. The fields named include trip counts, start and end times, hard braking, fast acceleration and speeding.
What the Settlement Does Not Specify
The reporting does not break the $220 million down by state or say whether any portion reaches affected consumers. It also does not name the data brokers or insurers that received the information. GM says it has strengthened its privacy practices since ending the product.
