GM to Pay $220 Million Over Unauthorized Sale of Smart Driver Data

Image: Ars Technica · Source

General Motors will pay $220 million following lawsuits from multiple states for selling customer driving data collected via its Smart Driver program to insurance companies without explicit consent.

General Motors (GM) has agreed to a $220 million settlement with the District of Columbia and 35 states after lawsuits accused the automaker of selling sensitive driver data collected through its Smart Driver program without adequate customer consent. The data shared included driver behavior and was sold indirectly to insurance companies, leading some customers to face increased premiums without their knowledge.

Smart Driver was initially marketed by GM as a tool for parents to monitor teen drivers or for individuals to track their driving habits. However, it emerged in 2024 that GM had been supplying the data to brokers, who then sold it to insurers. Many drivers reported they were unaware their data would be used in this manner.

In response to earlier concerns, GM and its subsidiary OnStar settled with the Federal Trade Commission (FTC) in early 2026, agreeing to a five-year ban on sharing geolocation or driver behavior data with third parties and discontinuing the Smart Driver program entirely. Despite this, states pursued further legal action, culminating in the recent multimillion-dollar settlement.

GM issued a statement to Reuters reaffirming its commitment to offering "safer, more helpful and personalized experiences enabled by connected vehicle data," while emphasizing transparency concerning data usage and customer control over shared information. A distinctive aspect of the settlement with the states, as reported by TechCrunch, is the requirement for independent third-party monitoring to verify GM's ongoing compliance with its privacy commitments, rather than relying solely on the company's assurances.

This case highlights growing regulatory and consumer scrutiny around connected vehicle data privacy, reflecting broader concerns about how automakers handle sensitive driver information in an increasingly data-driven automotive landscape.