GM to pay $220 million over sale of Smart Driver data
General Motors has agreed to pay $220 million to settle a lawsuit by 35 states and the District of Columbia over the sale of drivers' data, Ars Technica and Engadget report. The data came from GM's Smart Driver program and was sold to brokers that supplied insurers. Some drivers said their insurance costs rose as a result.
General Motors has agreed to pay $220 million to settle a lawsuit over the sale of drivers' data, Ars Technica and Engadget report. The suit was brought by the attorneys general of 35 states and the District of Columbia.
GM's Smart Driver program tracked driving habits such as hard braking and speeding, and the data was sold to brokers who supplied it to insurance companies, the outlets report. Some drivers found their insurance became more expensive as a result, Ars Technica and Engadget report. Many said they never knowingly agreed to share their data, Ars Technica reports.
The attorneys general said GM did not tell customers their data would be sold for that purpose, Engadget reports. They also said GM wrongly informed more than 370,000 drivers that they were not enrolled, the outlet reports. The program ran from 2016 through 2024, Engadget says.
Under the deal, GM must limit the driving data it collects and protect customers' personal information, Engadget reports. Ars Technica, citing TechCrunch, says a third party must check GM's compliance with its new privacy program.
"This agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we've taken to strengthen our privacy practices," a GM spokesperson said, Engadget reports. GM settled with the Federal Trade Commission last year, the outlets report. That deal bars it from sharing location or driving data for five years.
What we know: GM will pay $220 million to settle the states' Smart Driver lawsuit.
What we don't: How the money will be split among the states and whether drivers will get any of it.
Where outlets agree Ars Technica and Engadget report GM agreed to pay $220 million to settle the states' lawsuit over Smart Driver data.
Where they differ The cited reports agree on the key facts so far.