General Motors to pay $220 million over unauthorized sale of driver data

General Motors (GM) has agreed to pay $220 million to resolve litigation brought by 35 states and the District of Columbia. The settlement stems from the company's practice of sharing data collected through its Smart Driver system with third-party data brokers, who subsequently sold that information to insurance companies.

Consumers reported that their insurance premiums increased based on driving behavior metrics they were unaware were being tracked or shared. Many customers stated they had never provided informed consent for their telemetry data to be used by insurers to adjust coverage costs. The practice faced significant backlash when reports emerged in early 2024 detailing the scale of the data exchange.

This agreement concludes a series of legal challenges against the automaker. Earlier this year, GM finalized a settlement with the Federal Trade Commission (FTC), which prohibited the company from sharing geolocation and driving behavior data with third parties for five years. Following these controversies, GM discontinued the Smart Driver service across its vehicle fleet.