GM Pays $220 Million to Settle Driving Data Sales Claims

General Motors has agreed to pay $220 million to end a case over allegations that it unlawfully sold driver and location information to data brokers. The settlement resolves a complaint brought by a coalition of attorneys general from 36 US states.

The deal is not just a fine. GM must also limit the driving data it collects and obtain drivers' explicit consent before collecting their information. In practice, the company will have to rely on clear driver approval whenever it gathers data from connected vehicles.

The Smart Driver program and the allegations

At the center of the case is Smart Driver, a program GM no longer offers. It collected data on driving habits such as acceleration, braking and trip duration. According to the allegations, GM passed this information to data brokers, which allowed insurance companies to buy it and raise premiums.

The states also accused GM of enrolling drivers in Smart Driver and collecting their data without telling them. The complaint was therefore not only that the data was sold, but that drivers were never made aware they were part of such a program.

The settlement resolves these claims without waiting for a court ruling. Alongside the financial penalty, the limits on data collection and the explicit-consent requirement are the most concrete outcomes for drivers.

GM's response

GM spokesperson Charlotte McCoy said the settlement covers the Smart Driver product, which was discontinued in 2024, and reinforces steps the company has taken to strengthen its privacy practices. In McCoy's words, connected vehicle data enables safer, more useful and more personalized experiences. The company says it is committed to being transparent about what information is used, how it is protected, and how customers can decide what to share and what not to share.

The coalition and an earlier settlement

The case was led jointly by Oregon Attorney General Dan Rayfield and Washington Attorney General Nick Brown. Besides New York, Florida, Michigan, Nevada and Pennsylvania, a number of other states joined the coalition.

Rayfield said in a statement that people buy cars, not tracking devices. According to the attorney general, GM told drivers the program would help them drive more safely and that their data would not be shared with insurers without permission. Rayfield said the investigation showed the data was sold anyway, and that some drivers paid for it with higher premiums.

The settlement comes just months after GM agreed to pay $12.75 million in California over similar allegations.