GM to pay $220 million after selling customer Smart Driver data

General Motors will pay $220 million after selling customer Smart Driver data. The automaker marketed Smart Driver as a way for parents to monitor teen drivers or for adults to track their driving behavior. In 2024, it emerged that GM had been sharing that data with brokers, which then sold it to insurance companies. Some drivers found their insurance became more expensive, and many said they had no knowledge of agreeing to share such data for such purposes.

Earlier federal settlement

Last year, GM and its OnStar subsidiary entered into a settlement with the FTC, prohibiting them from sharing some kinds of driver data with third parties. That agreement was finalized this January. It banned the two companies from sharing geolocation data or driver behavior data for five years. At the time, GM also discontinued Smart Driver across its entire range.

State settlement terms

Now the automaker has reached terms with the District of Columbia and 35 states after their attorneys general joined together to sue GM as well. GM told Reuters that safer, more helpful and personalized experiences are enabled by connected vehicle data, and that it is committed to being clear about what information is used, how it is protected, and the choices customers have about what they share. According to TechCrunch, the settlement with the states is notable because it does not take GM's word that it is complying with the privacy policy; a third party will be required to make that determination.

Sources: Ars Technica