General Motors has reached a settlement with California to pay $12.75 million for selling its customers’ driving data. In addition, GM is banned from selling this data to consumer reporting agencies for five years.
This follows a settlement in January with the FTC for the same infraction by GM.
GM’s legal wrangling followed a 2024 New York Times story showing GM’s OnStar collected data including names, locations and driving behavior, without their customers’ permission in some cases. It then sold it to brokers who then sold it to auto insurers, who used it to raise rates on certain drivers.
See more at Engadget here.
Source: Engadget, Automotive News
