General Motors Settles with California Over Secret Driving Data Sales
The automaker allegedly collected data through its OnStar program and sold it to data brokers, earning roughly $20 million.
General Motors has reached a settlement with California Attorney General Rob Bonta over allegations that the automaker sold the driving data of hundreds of thousands of Californians without their knowledge or consent.
Key Details
- The Allegations: GM is accused of collecting data through its OnStar program and selling it to data brokers Verisk Analytics and LexisNexis Risk Solutions.
- Financial Impact: While GM earned approximately $20 million from these sales, California's insurance laws prohibit insurers from using driving data to set rates. As a result, no Californians saw increased premiums.
- The Settlement:
- GM will pay $12.75 million in civil penalties.
- The company has agreed to stop selling driving data to consumer reporting agencies for five years.
- GM must delete retained driver data within 180 days unless it obtains explicit customer consent.
- GM is also required to request deletion of the data by LexisNexis and Verisk.
Background
The New York Times reported in 2024 that several automakers, including GM, were sharing driving behavior information with insurers. This practice sparked widespread consumer concern over potential rate increases.
GM had previously settled with the Federal Trade Commission over similar data sales practices.
Statements
California Attorney General Rob Bonta stated that GM sold data without the knowledge or consent of drivers, despite having given them assurances to the contrary.
A GM spokesperson said the settlement addresses its Smart Driver product, which was discontinued in 2024, and reinforces the company's strengthened privacy practices.