WASHINGTON (dpa-AFX) - General Motors (GM) will pay $220 million to settle allegations that it improperly sold drivers' behavior and location data to brokers, who then provided the information to insurers that could use it to set or increase insurance rates.
The settlement with 35 U.S. states and the District of Columbia centers on GM's Smart Driver program, which enrolled millions of drivers between 2016 and its discontinuation in 2024. Authorities alleged GM marketed the service as a tool to improve driving safety while sharing customer data without adequate permission.
Under the settlement, GM must limit the driving information it collects and obtain express consent before collecting or sharing certain data. A third party will also assess the automaker's compliance with its new privacy program.
The agreement follows a $12.75 million California settlement in May and a separate deal with the Federal Trade Commission restricting GM from sharing vehicle geolocation and driver behavior data with consumer reporting agencies for five years.
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