General Motors will pay $220 million to resolve allegations from attorneys general in 36 states that the automaker collected and sold drivers’ location and driving information without proper consent. The agreement, announced Thursday, also requires GM to obtain affirmative, express permission before collecting or sharing certain data from connected vehicles.
The information came from GM’s Smart Driver program, a feature offered through connected-car apps that tracked driving behavior and seat-belt use. The program was presented as a safety tool. State officials alleged that GM provided the information to data brokers, which then sold it to insurance companies. Those insurers could use driving behavior in evaluating premiums, according to the allegations.
“This agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we’ve taken to strengthen our privacy practices,” GM said.
GM said connected-vehicle information can support safer and more personalized services. The company also said it is committed to explaining what information it uses, how it protects that information and what choices customers have about sharing it.
What the settlement requires
The agreement covers more than a payment to the states. It sets requirements for how GM handles driving and location information and adds outside oversight of the company’s privacy program. The settlement requires GM to:
- Obtain drivers’ express consent before collecting or disclosing certain driving and location data.
- Maintain a comprehensive privacy and data-protection program.
- Submit to assessments by an independent third party to evaluate compliance.
- Improve dealership oversight and training to prevent enrollment in data-collection programs without consent.
| Settlement term | Details |
|---|---|
| Total payment | $220 million |
| Participating states | 36 |
| Data at issue | Driving behavior and location information |
| Program status | Smart Driver ended in 2024 |
The state allegations focused on GM’s Smart Driver enrollment practices from 2016 through 2024. Officials said millions of drivers were enrolled during that period. They also alleged that the program’s disclosures told consumers their information would not be shared with insurers without express permission, while contracts with data brokers allowed the information to be used for insurance-related products.
Attorneys general further alleged that more than 370,000 drivers were incorrectly told through the OnStar app that they were not enrolled in Smart Driver when they actually were. The states said GM later removed those drivers from the program but did not tell them about the error, and that information already held by brokers and insurers remained there.
The multistate agreement follows separate action involving GM and its OnStar telematics service. In January, the Federal Trade Commission finalized an order barring GM and OnStar from sharing certain consumer data. The FTC order and the new state settlement both require greater transparency and explicit consent for certain data collection and sharing. GM discontinued Smart Driver in 2024, but the multistate case continued after the program ended.
