GM agrees to pay $12.75M in California driver privacy settlement

General Motors (GM) has come to a settlement regarding privacy violations with several law enforcement agencies, spearheaded by California Attorney General Rob Bonta. The settlement arose from concerns that emerged in 2024, where reports indicated that automakers, including GM, were disclosing customer driving information to insurance firms, raising alarms among consumers about potential increases in their insurance premiums. According to the announcement from Bonta’s office, GM was accused of selling sensitive information, including names, contact details, geolocation, and driving behavior data belonging to hundreds of thousands of Californians to data brokers Verisk Analytics and LexisNexis Risk Solutions. This data was reportedly gathered via GM’s OnStar program, generating approximately $20 million in revenue from these sales. Despite the serious allegations, Bonta’s office clarified that this data exchange did not result in higher insurance costs in California. This is largely due to state laws that prevent insurers from using driving data as a basis for determining insurance rates. As part of the settlement terms, GM will pay $12.75 million in civil penalties and will cease selling driving data to consumer reporting agencies for the next five years. Furthermore, GM is required to delete any remaining driver data within 180 days unless explicit consent is obtained from the customers. The company is also tasked with requesting Lexis and Verisk to eliminate the data they hold. Bonta stated, "General Motors sold the data of California drivers without their knowledge or consent, undermining assurances provided to drivers regarding data privacy." He emphasized that the settlement mandates GM to halt these unlawful practices and highlights the critical nature of data minimization under California privacy laws. Previously, GM had settled with the Federal Trade Commission concerning its data sales, resulting in a final order that prohibits the company and its OnStar service from selling specific data to consumer reporting agencies. In response to the settlement, GM indicated that it pertains to the Smart Driver product, which was discontinued in 2024, and reiterates their commitment to enhancing their privacy practices.