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GM to pay $220 million after selling customer Smart Driver data

Security1 min read

General Motors has agreed to pay $220 million after sharing customers' driving data without clear consent. The deal settles claims from the District of Columbia and 35 states.

What happened

GM sold data from its Smart Driver system to brokers. The brokers sold it to insurance companies. Some drivers then paid more for insurance. Many drivers said they never agreed to share their data this way. GM has now reached a settlement with the District of Columbia and 35 states, after their attorneys general sued.

Key numbers and facts

  • GM will pay $220 million.
  • The settlement covers the District of Columbia and 35 states.
  • An earlier deal with the FTC banned GM and OnStar from sharing geolocation and driver behavior data for five years.
  • That FTC settlement was finalized in January.
  • GM stopped offering Smart Driver across its entire range.

Background

Smart Driver was a GM tool. It let parents watch teen drivers and let adults track their own driving habits. In 2024, people learned that GM had been sharing this data with brokers. Those brokers passed it on to insurers, which could raise a driver's rates.

Why it matters

This case shows that car companies can collect a lot of personal data, such as where you drive and how you drive. People need clear choices about who gets that information. TechCrunch notes that this settlement is different because a third party will check whether GM follows its privacy rules, instead of relying only on GM's word.

What to watch

  • Whether the third-party checker finds GM following its privacy promises.
  • How the five-year FTC ban on sharing driver data is enforced.
  • Whether other automakers face similar rules about driver data.

Glossary

Smart Driver
A GM system that tracks driving behavior for parents or adults. GM has stopped offering it.
OnStar
GM's subsidiary that provides connected car services, such as in-car help and data features.
FTC
The Federal Trade Commission, a U.S. government agency that protects consumers from unfair business practices.

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