Full Breakdown
General Motors Pays $220 Million to End Driver-Data Lawsuit
By Drooid · · How we work
In this breakdown
01
Core Event
On October 29, General Motors (GM) agreed to a $220 million settlement with a coalition of 36 state attorneys general and the District of Columbia. The settlement resolves allegations that GM’s now-defunct Smart Driver program collected detailed driving-behavior and location data and sold it to data brokers, which then provided the information to insurance companies. The states contend the data were used to adjust insurance premiums without drivers’ knowledge or consent.
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02
Background & Context
GM launched Smart Driver in 2016 as a safety tool marketed through OnStar sign-ups. The program recorded trip times, frequency, hard braking, rapid acceleration and speeding. Although GM told participants the data would not be shared without explicit permission, the attorneys general allege the company sold the information to third-party brokers, which then sold it to insurers. Reports in March 2024 indicated insurers used the data to raise premiums, prompting a New York Times investigation and GM’s decision to discontinue Smart Driver in 2024.
Visual evidence
Images from the story
03
Timeline
- 2016–2024 – Smart Driver operates, enrolling millions of drivers.
- 2024 – New York Times reports insurers using GM data; program ends.
- January 2025 – FTC bans GM from disclosing certain driver data to consumer-reporting agencies for five years and requires a data-deletion mechanism.
- October 29 2026 – Settlement announced; GM to pay $220 million and adopt new privacy safeguards.
04
Data & Statistics
- $220 million total settlement, to be divided among the 36 states and D.C. (e.g., Ohio receives $8,076,105; Connecticut more than $6 million; Vermont $4.5 million).
- Over 10 million American drivers affected.
- ? 370,000 drivers were misinformed by the OnStar app that they were not enrolled while their data were still being collected and sold.
05
Official Statements & Responses
State attorneys general described the settlement as a means to restore consumer control. Washington Attorney General Nick Brown said the data were “personal, identifiable, and specific.” Connecticut Attorney General William Tong called the practice “an egregious violation of privacy.”
Under the settlement, GM must obtain affirmative, express consent before collecting or disclosing driving or location data, limit the scope of data it gathers, and implement a comprehensive privacy program with internal and external assessments. The automaker also agreed to dealership-oversight and training requirements to prevent unauthorized enrollments.
06
Criticism & Opposition
Ohio Attorney General Andy Wilson asserted that “GM broke consumers’ trust by selling such data without their knowledge and consent.” The coalition views the conduct as a breach of trust that exploited drivers for profit.
07
Verbatim Quotes
- “People bought a car, not a tracking device,” — Dan Rayfield, Oregon attorney
- “GM turned private vehicles into mobile insurance surveillance machines without consumer consent or awareness,” — William Tong, attorney
- “The data GM sold was personal, identifiable, and specific.” — Nick Brown, Washington attorney
- “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.
08
Why It Matters
The settlement sets a precedent for handling connected-vehicle data under state privacy statutes such as the Colorado Privacy Act and Connecticut Data Privacy Act. By mandating express consent and limiting data collection, the agreement pushes the automotive industry toward transparent, consent-based data practices, influencing future product designs and dealer enrollment procedures.