GM agrees to $220 million settlement over sale of driver data
publishers 33articles 33first reported 29 Oct, 20:40 UTCdeveloping since 30 Oct · 3 editions
General Motors has agreed to pay $220 million to resolve allegations that it violated customers’ privacy by collecting and selling driving-behavior data that reached insurance companies.
GM promoted its Smart Driver program as a tool that allowed customers to monitor driving habits, including those of teenage drivers. The company shared information gathered through the program with data brokers, which then sold it to insurers. Some drivers said their insurance costs rose as a result and that they did not know they had agreed to this use of their information.
The settlement follows an investigation and legal action by a multistate coalition of attorneys general. Individual reported allocations include more than $5 million for Wisconsin, $4.5 million for Vermont and nearly $2.9 million for Hawaii.
GM and its OnStar subsidiary also reached a separate settlement with the Federal Trade Commission that was finalized in January. That agreement bars the companies from sharing certain geolocation and driving-behavior data with third parties for five years. GM has discontinued Smart Driver across its vehicle lineup.
Under the new state settlement, a third party will assess GM’s compliance with its privacy program, according to TechCrunch as cited by Ars Technica. GM said connected-vehicle data can enable safer and more personalized services and that it is committed to transparency about how information is used, protected and shared.
HOW THIS STORY WAS MADE
Written from 8 articles, 1 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written 42 h after the record first saw the story; the editor kept it as written.
- Publishers
- 33
- Source articles
- 33
- Given to the writer
- 8, 1 with the article's own text
- Independent newsrooms
- 8
- This version written
- 42 h after the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and published it as written.
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