General Motors will pay $220 million to settle a lawsuit over driver data, Engadget reports. The attorneys general of 35 U.S. states and the District of Columbia brought the case.
The suit centers on GM’s OnStar Smart Driver program. From 2016 through 2024, GM enrolled millions of customers and tracked how they drove, including hard braking, late night driving and speeding. GM then sold that data to data brokers for insurance use. Insurance companies raised premiums for some drivers based on it.
Dealers played a big part. GM paid dealerships bonuses to sign up as many customers as possible. In some cases, dealership employees allegedly accepted the program’s terms for customers without their express permission.
The attorneys general said GM never told customers their data would be sold for that purpose. Many drivers didn’t know they were in the program at all.
The AGs also said GM told more than 370,000 drivers they were not enrolled when they were. GM later unenrolled them, but it didn’t tell them about the mistake and still sold their data.
Under the settlement, GM must limit the driving data it collects and protect customers’ personal information. It also faces required internal and external privacy assessments, plus oversight and added training at its dealerships.
This isn’t the first fallout for GM. Earlier this year, the Federal Trade Commission banned GM from sharing certain consumer data with third parties for five years. In May, GM reached a separate $12.75 million settlement with California.
“This agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we’ve taken to strengthen our privacy practices,” a GM spokesperson told Engadget. “Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it’s protected, and the choices customers have about what they share.”
CEoutlook covered the Smart Driver data issue when it first came to light.
Source: Engadget, Oct. 30, 2026.
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