GM reaches $220M settlement over selling drivers’ private data
General Motors has agreed to a $220 million settlement with 36 states over allegations that it illegally sold driver location and behavior data to third-party brokers. The company must now obtain express consent from drivers and undergo third-party compliance audits.
Why it matters
This settlement sets a significant precedent for consumer privacy rights and data handling practices within the automotive industry.
General Motors will pay $220 million to 36 states to settle allegations that it illegally sold private driving behavior and location information to data brokers.
As part of the settlement, GM must get drivers’ express consent before it collects or shares their driving and location data — terms that are in line with separate agreements it previously reached with California and the Federal Trade Commission. This settlement does contain a new requirement that GM must have a third-party assess the automaker’s compliance with the privacy program it has put in place.
The agreement announced Thursday settles a lawsuit brought by a coalition of attorneys general from 36 states that alleged GM had sold the information to data brokers, which in turn then sold it to insurance providers.
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