GM Agrees to $220 Million Settlement Over Selling Driver Data
fliptop writes:
The company collected data of various behavioral metrics, including late night driving and seat belt usage:
General Motors (GM) has agreed to a $220 million settlement with a coalition of 36 attorneys general to resolve allegations that it unlawfully sold customer data to third parties.
GM allegedly sold customers' location information and driver behavior data to third parties, including data brokers, who then resold it to insurance companies. The insurers used this information to set premiums depending on drivers' driving habits. However, "GM did not disclose to drivers that their data would be sold for this purpose," the Washington state attorney general's office said in an Oct. 29 statement.
Washington co-led the case together with Oregon. GM has settled the matter with all 36 attorneys general.
From TechCrunch:
The settlement comes more than two years after a New York Times report showed how GM and OnStar collected, used, and sold drivers' precise geolocation data and driving behavior to third parties, including data brokers LexisNexis and Verisk. The data was collected through GM's Smart Driver program, a free feature contained within its connected car apps that tracked and rated driving behaviors and seat belt use. Data brokers sold this information to insurance providers, which could affect customers' rates, the NYT reported at the time.
GM discontinued Smart Driver in 2024, but that didn't stop legal action. In January, the FTC finalized an order that bans GM and its OnStar telematics service from sharing certain consumer data. The FTC settlement, as well as the multistate one announced Thursday, also requires GM to be more transparent with its consumers and receive their explicit consent for certain collection.
Previously: GM Banned from Selling Your Driving Data for Five Years
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