General Motors agreed to a $220 million settlement to resolve a lawsuit filed by the attorneys general of 35 states and the District of Columbia alleging the automaker illegally sold drivers' data.
The complaint accused GM of selling drivers' private behavior and location data to brokers, who then sold the information to insurers that used it to set, and sometimes increase, rates.
"People bought a car, not a tracking device," Oregon Attorney General Dan Rayfield said in a statement. Rayfield and Washington state Attorney General Nick Brown co-led the case while a bipartisan coalition of attorneys general, including from Alabama, Massachusetts and Pennsylvania, joined in the lawsuit.
The coalition said in the lawsuit that GM pitched its Smart Driver
program to help people improve their personal driving safety; however, the automaker went back on its promise not to sell their data without permission. Millions of drivers were enrolled in the program between 2016 and its discontinuation in 2024.
In a statement to USA TODAY, GM 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 automaker said.
Settlement requires data collection limits
The latest settlement also requires GM to limit driving data it collects and obtain drivers' express consent before collecting or sharing it.
In January 2025, GM, in an agreement with the U.S. Federal Trade Commission, pledged not to disclose vehicle geolocation and driver behavior data to consumer reporting agencies for five years. In May, GM agreed to a $12.75 million settlement to resolve a California investigation into its alleged sale of driver data to two data brokers.
Insurers such as Allstate, Progressive, and Geico use so-called telematics, such as Smart Driver, to monitor drivers' habits. They say the technology rewards good driving with lower premiums.
Contributing: Reuters
This article originally appeared on USA TODAY: GM agrees to $220M settlement to resolve lawsuit over data selling
