GM Settles for $220 Million Over Selling Drivers' Private Data, Enhances Privacy Measures

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General Motors will pay $220 million to settle claims of illegally selling driver data, committing to explicit consent for data sharing and stronger privacy practices amid growing vehicle connectivity.

General Motors (GM) has agreed to a $220 million settlement with a coalition of attorneys general from 36 states over allegations that it illegally sold private driving behavior and location information to data brokers. The lawsuit centered on GM's sharing of detailed driver data collected through its Smart Driver program, which analyzed driving habits and seat belt use to offer ratings and was embedded in its connected car apps.

According to TechCrunch, the data brokers purchasing this information, including LexisNexis and Verisk, subsequently sold it to insurance providers, which could affect customers' insurance rates. GM discontinued the Smart Driver program in 2024 but faced ongoing legal scrutiny following a 2024 New York Times exposé that detailed how GM and its OnStar telematics service tracked and sold precise driver data.

Under the terms of the settlement, GM must obtain drivers' explicit consent before collecting or sharing their driving and location data, aligning with prior agreements made with California and the Federal Trade Commission (FTC). Additionally, a new requirement mandates an independent third-party to assess GM's compliance with its privacy program. GM must also provide transparency through updated privacy policies and a consumer-facing Privacy Center.

The FTC finalized an order earlier in 2026, restricting GM and OnStar from sharing certain consumer data and requiring similar consent and transparency measures. GM has stated it will no longer sell vehicle information linked to individuals, specific locations, or driving behavior but may continue sharing anonymized data with partners.

This settlement and increased regulatory oversight come as vehicles become more sensor-rich and software-centric, integrating with digital services and AI. GM is expanding its OnStar service with a new personal AI assistant capable of controlling vehicle functions and accessing live and recorded camera feeds. The company emphasizes user control over data sharing and encryption of recordings, although customers who do not consent may face limited access to features.

GM highlighted these privacy commitments during its October 2026 GM Forward event, underscoring its focus on safeguarding customer data amid expanding vehicle connectivity. The $220 million settlement signals regulatory and public pressure on automakers to handle driving data responsibly as the industry advances toward increasingly connected and AI-enabled vehicles.