GM will pay $220 million to settle claims brought by the District of Columbia and 35 states over its handling of driver data, according to the source.
The dispute centers on GM's Smart Driver system, which the company marketed as a way for parents to monitor teen drivers or for adults to track their own driving. The source reports that in 2024, it emerged GM had been sharing that data with brokers. The brokers then sold it to insurance companies, and some drivers said their insurance premiums rose as a result. Many of those drivers said they did not knowingly agree to share the data for that purpose.
Last year, GM and its OnStar subsidiary reached a settlement with the Federal Trade Commission. That agreement barred them from sharing certain driver data with third parties for five years and was finalized in January. GM also discontinued Smart Driver across its entire range.
The state settlement required the company to adopt a new privacy program. According to TechCrunch, as cited by the source, a third party will assess GM's compliance with that program.
In a statement, GM said that "[s]afer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it's protected, and the choices customers have about what they share."