General Motors has agreed to pay $220 million to settle claims that it sold driver and location data to brokers. A coalition of 36 state attorneys general brought the complaint, first reported by Reuters.
The settlement covers GM’s now-discontinued Smart Driver program. That feature tracked acceleration, braking and trip length, then allegedly passed the results to data brokers. Insurance companies could buy the data and raise premiums.
States also accused GM of enrolling drivers without telling them. Customers were never clearly informed that the program existed or that their cars were collecting information.
The deal requires more than money. GM must limit the driving data it collects going forward. It also has to obtain “express consent” from drivers before gathering their information at all.
GM says the program ended two years ago. “This agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we’ve taken to strengthen our privacy practices,” spokesperson Charlotte McCoy told The Verge.
She argued that connected vehicle data still delivers real value. “Safer, more helpful and personalized experiences are enabled by connected vehicle data,” McCoy said, adding that GM wants to be clear about how information is used and protected.
The settlement follows an earlier California case. GM agreed to pay $12.75 million there just months ago over similar allegations about selling driver data to insurers.
Oregon Attorney General Dan Rayfield and Washington Attorney General Nick Brown co-led the multistate effort. New York, Florida, Michigan, Nevada and Pennsylvania joined, along with many other states.
Rayfield summed up the states’ position bluntly. “People bought a car, not a tracking device,” he said. Regulators argue that connected cars turned everyday driving into a steady stream of sellable records.
The case fits a wider pattern. New Mexico’s $25 billion ruling against Meta showed states will pursue huge privacy penalties, while Google’s expanded ad targeting across Gmail and Photos raised the same consent questions.
For drivers, the practical lesson is simple. Modern vehicles collect far more than most owners realize, and the settings that control it are buried. Checking those menus is now part of owning a connected car.
Read the full report at The Verge.
The Netherlands, for internationals
One email a week: the week's news for internationals in the Netherlands, new practical guides and what changed in the cities. No spam, unsubscribe any time.
