General Motors to pay $220 million in multistate privacy settlement

General Motors has reached a $220 million settlement with a coalition of 36 state attorneys general and the District of Columbia to resolve allegations that it illegally sold drivers' private data. The investigation focused on the company's Smart Driver program, which operated from 2016 to 2024.

While marketed as a tool to help motorists improve safety, the program allegedly tracked driving habits, such as hard braking and rapid acceleration, and precise geolocation without clear consumer consent. This data was sold to brokers like LexisNexis and Verisk, who then provided it to insurance companies, potentially allowing them to adjust driver premiums based on the collected telemetry.

Under the terms of the agreement, GM must obtain express consent from drivers before collecting or sharing driving and location data. The company is also required to undergo independent third-party assessments to ensure compliance with its privacy program. This settlement follows previous actions by the Federal Trade Commission and a separate $12.75 million settlement with California.