GM agrees to $220 million settlement over collection and sale of driver data

General Motors has agreed to pay $220 million to settle allegations by attorneys general from 35 states and the District of Columbia that the automaker collected and sold drivers’ behavior and location data without adequate notice or consent.

The allegations centered on GM’s OnStar Smart Driver program, which operated from 2016 until GM discontinued it in 2024. The program recorded information including speeding, hard braking, late-night driving, seat-belt use and precise location. Authorities alleged GM provided identifiable data to brokers including LexisNexis and Verisk, which then sold it to insurers. Some drivers subsequently faced higher insurance premiums.

The attorneys general said some customers did not know they had been enrolled. Dealership employees were allegedly encouraged through bonuses to enroll customers and, in some cases, accepted terms on their behalf without express permission. More than 370,000 drivers were reportedly told they were not enrolled when they were.

Under the settlement, GM must obtain drivers’ express consent before collecting or sharing driving and location information, limit data collection and strengthen its privacy safeguards. It must also undergo internal and independent third-party assessments of its compliance and provide additional dealership training and oversight.

GM said the agreement addresses a product it ended in 2024 and reinforces steps taken to strengthen privacy practices. The settlement follows a Federal Trade Commission order restricting GM and OnStar from sharing certain consumer data for five years and a separate $12.75 million agreement with California.