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Consumer · Privacy2 min read

Automaker to pay $220 million over selling driver data

A group of state attorneys general says an automaker sold driving and location data without consent, and will pay $220 million. Insurance rates may be affected.

By the Dashline deskSource: JD Supra
Automaker to pay $220 million over selling driver data
Photo: Larry D. Moore, CC BY 4.0

A group of state attorneys general has announced a $220 million settlement with an automaker. The states allege the company collected and sold information about how people drive and where they go, without their knowledge or consent. The data allegedly ended up with insurance companies.

What the states say happened

According to the announcement, the automaker collected consumers' driving behavior and location information. Data brokers, which are companies that buy and resell personal information, then allegedly passed it on to insurers. That could have affected what drivers pay for insurance.

As part of the deal, the company must limit how much consumer data it collects. It must also put a comprehensive data privacy program in place.

Where the money goes

New York will receive more than $12 million. Massachusetts will receive $5.7 million. The material does not say how the rest is divided among the other states, or whether individual drivers will get payments.

What is not known yet

  • The automaker is not named in the material reviewed.
  • It is not clear which insurers received the data.
  • It is not stated whether any driver's rates actually went up.
  • There is no word on how drivers can learn if their data was shared.

A related subscription case

In a separate matter, New York Attorney General Letitia James settled with a news subscription provider for $500,000. She alleged the company did not clearly disclose subscription terms or give required acknowledgments. She also said it failed to warn customers before automatic renewals that came with significant price increases, and made canceling hard.

What to do

  • Review the privacy settings in your car and its companion app.
  • Look for any options that control data sharing.
  • Check your subscriptions for upcoming renewals and big price jumps.
The takeaway

Check what driving data your car shares, and watch your subscriptions for automatic renewals with price increases.

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