GM settles for $12.75M after selling California drivers’ data without consent. See how this impacts vehicle privacy. Read the full story!
General Motors (GM) has agreed to pay $12.75 million to settle an investigation in California regarding allegations that the automotive giant illegally sold the detailed driving data of hundreds of thousands of customers to third-party data brokers.
The settlement, which is currently awaiting court approval, requires GM to pay a substantial civil penalty. Beyond the financial cost, the agreement imposes strict new limitations on how the company handles driver data, particularly for users subscribed to the OnStar service. Most notably, GM is now prohibited from selling this sensitive information to brokers and must adhere to a strict five-year ban on the sale of personal user data.
What Specific Data Was Sold?
The investigation revealed that the data shared by GM was highly personal and intrusive. The information sold to brokers included:
- Personal Identifiers: Full names, phone numbers, and home addresses.
- Precision Location: Detailed GPS coordinates showing exactly where OnStar users drove and parked.
- Behavioral Metrics: From 2016 to 2024, GM tracked driving speeds and specific behaviors, such as sudden acceleration.
The Impact on Insurance Premiums
One of the most concerning aspects of this breach is how the data was utilized. Media reports suggest that this behavioral data was shared with insurance companies, which may have used the information to justify increasing insurance premiums in certain regions.
California Attorney General Rob Bonta was quick to condemn the practice, emphasizing that state law strictly prohibits insurance companies from using such data for pricing purposes.
A “Serious Betrayal” of Consumer Trust
The backlash against GM has been severe. Attorney General Bonta stated that GM sold the data without the knowledge or consent of California drivers, despite previous assurances to customers that such privacy violations would not occur. He noted that the precision of the location data could potentially reveal the daily routines and private habits of thousands of citizens.
The Federal Trade Commission (FTC) echoed this sentiment, describing GM’s actions as a “serious betrayal of consumer trust.” In January 2025, the FTC confirmed that GM and OnStar agreed to stop disclosing or selling sensitive vehicle location and driving behavior data to consumer reporting agencies for the next five years.
GM’s Response and the Path Forward
In response to the settlement, GM clarified that the controversy centered around the “Smart Driver” product, which the company discontinued in 2024. GM has emphasized the steps it is now taking to bolster privacy protections and has committed to being more transparent about how it collects and utilizes customer data.
The company has pledged to grant users more control over their personal information to prevent similar incidents from occurring in the future.
A Growing Trend in Automotive Privacy Probes
This case is part of a broader crackdown on the automotive industry. In 2023, California privacy regulators launched several investigations into the data practices of connected vehicles. By 2024, it became increasingly clear that multiple automakers were sharing driving behavior data with insurers, sparking a wider conversation about the balance between vehicle connectivity and consumer privacy.