Summary
A coalition of 36 state attorneys general secured the settlement, which also requires GM to limit the data it collects. General Motors has agreed to p…
What this means for you
The settlement requires GM to limit the driving data it collects and obtain express consent before collecting information, which may affect connected-vehicle features that Chinese drivers in the US use. The article states that GM allegedly passed driving data to data brokers, enabling insurance companies to purchase the data and raise premiums, so the settlement could reduce the risk of unexpected premium increases for those who were enrolled in the Smart Driver program. The program was discontinued in 2024, and the settlement addresses that product specifically. The agreement resolves a complaint from a coalition of 36 US attorneys general, including states such as New York, Florida, Michigan, Nevada, and Pennsylvania where many Chinese residents live. GM also agreed to pay $12.75 million to settle similar claims in California earlier.
A coalition of 36 state attorneys general secured the settlement, which also requires GM to limit the data it collects.
General Motors has agreed to pay $220 million to settle claims that it illegally sold driver and location information to data brokers, as reported earlier by Reuters. The agreement, which resolves a complaint from a coalition of 36 US attorneys general, requires GM to limit the driving data it collects and obtain “express consent” from drivers before collecting their information.
The allegations surround GM’s now-discontinued Smart Driver program, which collected data about driving habits, including acceleration, braking, and trip length. GM allegedly passed this information to data brokers, enabling insurance companies to purchase the data and raise premiums. The states also accused GM of failing to notify drivers that they were enrolled in its Smart Driver program, and that the carmaker was collecting their data.
“This agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we’ve taken to strengthen our privacy practices,” GM spokesperson Charlotte McCoy said in an emailed statement to The Verge. “Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it’s protected, and the choices customers have about what they share.”
This settlement comes just months after GM agreed to pay $12.75 million to settle similar claims in California. Oregon AG Dan Rayfield and Washington AG Nick Brown co-led the states’ case against GM, which also included New York, Florida, Michigan, Nevada, Pennsylvania, and many others.
“People bought a car, not a tracking device,” Rayfield says in a press release. “GM told drivers this program would help them drive more safely and promised it wouldn’t share their data with insurers without permission. Our investigation found GM sold that data anyway, and some drivers paid for it with higher premiums.”
Update, October 29th: Added a statement from GM.
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Source: The Verge
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Have you ever been enrolled in a vehicle telematics program like Smart Driver without realizing it, and did you notice any change in your insurance premiums?
