GM to Pay $220 Million in Multistate Driver Data Settlement

General Motors will pay $220 million to settle claims from a coalition of 36 state attorneys general that it illegally sold drivers' private driving behavior and location data to data brokers, according to TechCrunch. The agreement, announced Thursday, requires GM to obtain drivers' express consent before collecting or sharing their driving and location data going forward.

What did GM agree to pay and to whom?

The $220 million settlement resolves a lawsuit brought by attorneys general from 36 states, TechCrunch reported. Beyond the payment, the deal adds a requirement not present in GM's earlier privacy settlements: a third party must now assess GM's compliance with the privacy program the automaker has put in place.

What triggered the lawsuit against GM?

The states' case traces back to a New York Times report more than two years ago that detailed how GM and its OnStar service collected, used and sold drivers' precise geolocation data and driving behavior to third parties, including data brokers LexisNexis and Verisk, according to TechCrunch. That data came through GM's Smart Driver program, a free feature inside the automaker's connected car apps that tracked and rated driving behaviors and seatbelt use. The brokers then resold the information to insurance providers, which could use it to affect customers' rates, the Times reported at the time, per TechCrunch's account.

GM discontinued Smart Driver in 2024, but the shutdown did not halt the legal action that followed.

What must GM do differently now?

Under the settlement, GM must get drivers' explicit consent before collecting or sharing their driving and location data, terms TechCrunch notes are in line with separate agreements GM previously reached with California and the Federal Trade Commission. GM says it will no longer sell vehicle information that can be linked to an individual, their vehicle's location, or how they drive, though the company may still disclose anonymized data not tied to a specific person with certain partners. GM has also updated its privacy policy language and created a consumer-facing Privacy Center, according to the report.

How does this settlement relate to earlier FTC and California actions?

This is not GM's first privacy settlement tied to Smart Driver. In January, the FTC finalized an order barring GM and OnStar from sharing certain consumer data, TechCrunch reported. Like the FTC order and the California agreement before it, Thursday's multistate settlement requires GM to be more transparent with consumers and to secure explicit consent for certain types of data collection — but it goes further by mandating independent, third-party verification of GM's compliance.

What has GM said about the settlement?

"This agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we've taken to strengthen our privacy practices," GM said in an emailed statement cited by TechCrunch. "Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it's protected, and the choices customers have about what they share."

The settlement lands as automakers continue adding sensors and computing power to new vehicles, with GM and competitors building software platforms that link driving data to apps such as calendars, messages and email — including GM's own work on in-car personal AI assistants, according to TechCrunch.