GM to pay $220 million over selling drivers' data without clear consent

General Motors has agreed to pay $220 million to settle claims that it collected and sold drivers' personal data without clear consent. The deal, announced on October 29 by the Washington State attorney general's office, involves 36 state attorneys general. About 370,000 drivers were told they were not enrolled in a GM program, yet their data was collected anyway.

What was collected

The program at the center of the case is called Smart Driver. The data included where drivers were, how often they drove, and for how long. It also covered braking and acceleration habits. That may sound minor, but the Washington attorney general's office stressed that the information was "personal, identifiable, and specific."

Where the money goes

Washington gets $12.3 million. Oregon gets $10.4 million and Michigan gets $7.2 million. New York gets over $12 million. The rest goes to the other states that joined. It is not clear from the announcement whether individual drivers will receive any payment.

How it spread

The 370,000 drivers may be only part of the picture. Potentially millions of drivers had data collected and sold through OnStar, GM's vehicle connection service, between 2016 and 2024. Sign-ups were tied to rewards. The more customers enrolled, the more salespeople earned in bonuses, and the higher their dealerships climbed in GM's rankings.

The New York Times published several reports on the practice. They included concerns that GM worked with insurance companies in ways that could raise drivers' premiums. Those reports are cited as the main reason GM shut down Smart Driver.

What changes for GM

• GM must get a driver's express consent before collecting or sharing driving and location data.
• The driving data GM can collect going forward is limited.
• Outside reviewers will check that GM follows the new rules.
• Dealership employees will get training and oversight.

What to do

Anyone with a connected car, from GM or another maker, can open the car's app and look at the privacy settings. Check what driving and location data is shared and with whom. If the answer is unclear, ask the dealer or the automaker directly.