GM to pay $220M to settle claims it sold driver data
General Motors (GM) agreed to pay $220 million to settle a multistate lawsuit over allegations it sold driver data without consent. The automaker misused data collected through its Smart Driver program, according to 36 attorneys general. The settlement requires GM to obtain explicit consent before collecting or disclosing data and to undergo privacy assessments. GM discontinued the program in 2024 and denies selling individually identifiable data.
How this was made
The 30-second read
Why it matters
GM must obtain affirmative express consent before collecting or disclosing driving and location data, limit collection to relevant/necessary purposes, and undergo privacy program assessments plus dealership oversight and training.
Market read
A large, company-specific privacy settlement with mandated consent and oversight is a tangible legal and compliance catalyst for GM.
What to watch
Deal terms include affirmative express consent and dealership oversight, which may be operationally manageable but could still affect OnStar-related product design and partner data flows.
Background
The multistate lawsuit alleged GM misused and sold driving and location data collected via its Smart Driver program tied to OnStar enrollment.
Ticker impact
General Motors agreed to pay $220M to settle claims it sold Smart Driver location and driving behavior data to brokers.
Likely downside bias as investors price ongoing privacy compliance costs and potential follow-on enforcement risk.
The article is a direct, company-specific legal settlement with a large dollar figure and new affirmative-consent and oversight requirements.
Market effects
Raises scrutiny for automakers’ telematics and connected-car monetization models, potentially pressuring peers’ privacy disclosures and consent mechanics.
US state AG coalition action highlights multi-state enforcement risk for automakers operating in regulated jurisdictions.
May reinforce broader privacy-regulatory expectations for vehicle data sharing beyond the US.
Counterpoint
The settlement also confirms GM discontinued the Smart Driver program in 2024, which could limit incremental future exposure versus ongoing programs.
Key entities
- companyGeneral Motors
Agreed to pay $220M to settle claims over selling Smart Driver driving and location data.
- government_officialOregon Attorney General Dan Rayfield
Quoted criticizing the program and stating the settlement returns control to consumers.
- government_officialWashington Attorney General Nick Brown
Led the bipartisan agreement and emphasized accountability for misusing drivers’ data.
