GM Agrees to Pay $12.75M in California Driver Privacy Settlement
General Motors has settled with law enforcement agencies over alleged data sharing practices. Here’s what you need to know.
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General Motors Has Reaching a Major Settlement Over Data Sharing Practices
In a significant privacy-related development, General Motors (GM) has agreed to pay $12.75 million in civil penalties as part of a settlement with law enforcement agencies led by California Attorney General Rob Bonta. The agreement stems from allegations that GM shared the driving behavior data and personal information of hundreds of thousands of Californians with data brokers like Verisk Analytics and LexisNexis Risk Solutions.
The incident, which dates back to 2024, was first reported by The New York Times. According to Bonta's office, GM collected this information through its OnStar program. The settlement is part of a broader effort to protect consumer privacy and ensure that companies like GM do not misuse personal data.
While the data shared did not result in increased insurance rates for Californians (as prohibited by state laws), Bonta emphasized the importance of data minimization. The settlement requires GM to cease selling driving data to any consumer reporting agencies for five years and delete any retained driver data within 180 days, unless customers give explicit consent.
“General Motors sold the data of California drivers without their knowledge or consent,” Bonta stated in a press release. “This settlement underscores the importance of data minimization under California’s privacy law—companies can’t just hold on to data and use it later for another purpose.”
Previous Settlements and Future Implications
This isn't the first time GM has faced scrutiny over its data practices. In 2024, they also settled with the Federal Trade Commission (FTC), which banned them from selling certain types of consumer data to third parties. The latest settlement further solidifies stricter privacy measures within the company.
“General Motors has taken significant steps to strengthen our privacy practices,” a spokesperson for GM told Reuters, addressing concerns over their discontinued Smart Driver product, which was related to this incident.
