General Motors has agreed to pay $220 million to settle a lawsuit brought by 35 U.S. states and Washington, D.C. The lawsuit, led by a bipartisan coalition of state attorneys general, alleged that GM sold driver data to insurance companies. GM did not admit wrongdoing. The "Smart Driver" program at issue was originally an opt-in feature allowing car owners to record their driving safety. The states alleged that GM sold users' personal information and driving data to data brokers without notifying them, and that the data ultimately reached insurance companies. The data involved highly identifiable private information, including driving frequency, trip times, and details of driving maneuvers. In addition, GM's OnStar app erroneously informed more than 370,000 drivers who had enrolled in the program that they had not signed up. Some users saw their premiums rise despite having no accidents—or even struggled to obtain insurance—because the relevant driving data had been provided to insurers. The program was launched in 2016, and GM stopped offering the product in 2024. This settlement will further strengthen its existing privacy protections. GM said it will continue to implement measures related to user information disclosure and the protection of user rights.
