General Motors (GM) has reached a $220 million legal settlement with a coalition of 36 attorneys general in the United States, following allegations related to the sale of driver data and their geographic locations to data brokers without obtaining clear consent from users.
Smart Driver Program Details and Allegations
The case centers on the Smart Driver program, which the company discontinued in 2024. The program collected precise details about driving habits, including acceleration rates, brake usage, and trip lengths. According to the allegations, General Motors transferred this data to data brokers, allowing insurance companies to purchase this information and use it to raise insurance premiums for drivers without their knowledge or consent.
Attorneys general noted that the company failed to notify drivers of their enrollment in the program or the nature of the data being collected, effectively turning vehicles into tracking tools rather than mere means of transportation.
What Changes in Practice?
Under the terms of the settlement, General Motors commits to the following:
- Technical Restrictions: Imposing strict limits on the type of driving data the company collects.
- Explicit Consent: Requiring the company to obtain explicit and direct consent from drivers before beginning to collect any information related to their behavior on the road.
- Transparency: Enhancing privacy practices to ensure clarity regarding the information being collected, how it is protected, and the options available to customers.
For its part, General Motors spokesperson Charlotte McKee stated that the company has taken steps to enhance privacy practices, emphasizing its commitment to transparency regarding the data used to improve the connected vehicle experience.
Settlement Context
This major settlement comes just months after General Motors agreed to pay $12.75 million to settle similar lawsuits in the state of California. This class-action case was led by Oregon Attorney General Dan Rayfield and Washington Attorney General Nick Brown, with broad participation from other states such as New York, Florida, and Pennsylvania.