By Jonathan Stempel
Oct 29 (Reuters) - General Motors will pay $220 million to settle allegations that it illegally sold drivers' private behavior and location data to brokers, who then sold the information to insurers that used it to set and sometimes increase rates.
The settlement, announced on Thursday, resolves claims by the attorneys general of 35 US states and the District of Columbia over the automaker's Smart Driver program, which enrolled millions of drivers between 2016 and its discontinuation
in 2024. Other regulators have also reviewed GM's handling of driver data.
GM was accused of pitching Smart Driver to help people improve their personal driving safety, only to violate drivers' privacy by reneging on its promise not to sell their data without permission. Many people who signed up were also enrolled in GM's OnStar safety, navigation and diagnostic service.
"People bought a car, not a tracking device," Oregon Attorney General Dan Rayfield said in a statement. Rayfield's office and the office of Washington Attorney General Nick Brown led the bipartisan state coalition.
The settlement also requires GM to limit driving data it collects, and obtain drivers' express consent before collecting or sharing that data.
A GM spokesperson said the settlement reinforces other steps the Detroit automaker has taken to strengthen privacy.
"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 spokesperson said.
Insurers such as Allstate, Progressive and Berkshire Hathaway's Geico use so-called telematics in monitoring drivers' habits. They say the technology rewards good driving through lower premiums.
The settlement follows GM's agreement in May to pay $12.75 million to settle a California investigation into its alleged sale of driver data to two data brokers.
In January 2025, GM agreed with the US Federal Trade Commission not to disclose vehicle geolocation and driver behavior data to consumer reporting agencies for five years.
(Reporting by Jonathan Stempel in New York; Additional reporting by Kalea Hall in Detroit; Editing by Franklin Paul and David Gaffen)
