GM to Pay $220 Million to 36 States Over Secret Driver-Data Sales

GM to Pay $220 Million to 36 States Over Secret Driver-Data Sales

A $220 million deal closes the multi-state Smart Driver case

General Motors will pay $220 million to settle with a coalition of 36 attorneys general over allegations that it illegally sold drivers' private behavior and location data. Announced on October 29, the deal resolves claims centered on GM's OnStar Smart Driver program. Beyond the money, GM must obtain drivers' affirmative express consent before collecting or sharing driving and location data, run a comprehensive data privacy program, undergo internal and third-party compliance assessments, and add oversight and training at dealerships so buyers are not enrolled without consent.

The allegation: trips tracked, brokers paid, insurers priced

Investigators say GM collected precise location, speed, seatbelt use and other driving metrics through Smart Driver and sold them to data brokers such as LexisNexis and Verisk, which resold the data to insurers that used it in part to set rates. Some drivers saw premiums rise. New York Attorney General Letitia James said New Yorkers should never have to worry about a car company tracking their every move behind the wheel. GM said the agreement addresses Smart Driver, a product it ended in 2024, and that it is committed to being clear about what information is used, how it is protected, and the choices customers have.

A scandal dating to 2024, with regulators already circling

The case traces back to 2024 reporting that exposed the broker arrangements; GM stopped selling data to LexisNexis and Verisk that year and discontinued Smart Driver. In January 2025 the Federal Trade Commission acted separately, barring GM from disclosing certain driver data to consumer reporting agencies for five years and ordering a deletion-request process. California previously extracted a $12.75 million settlement over the same conduct. The new element in this deal, noted by TechCrunch, is a mandatory third-party assessment of GM's compliance with its privacy program.

Who gets what: payouts land across the states

State shares announced so far include $12,054,341 for New York, $12.3 million for Washington, $8,076,105 for Ohio and $7.2 million for Michigan. Washington and Oregon co-led the coalition. The case covers nearly 10.3 million drivers. Investigators also found the OnStar app wrongly told more than 370,000 drivers they were not enrolled in Smart Driver while their data was still collected and sold.

What comes next: tighter rules, watched dealers

Washington's attorney general called the terms significantly stronger than any earlier GM agreement on this conduct. GM must now limit the driving data it collects and cannot collect, use or share driving and location data without prior express consent. Dealership enrollment practices face direct scrutiny. For drivers, the practical next step is to watch for GM's data-deletion and consent-management options and to check whether their vehicle is still feeding driving data anywhere.