GM Agrees to $220 Million Driver Data Privacy Settlement

On October 29, GM agreed to pay USD 220 million to resolve allegations that it illegally collected and sold drivers' private driving behavior and location data to brokers. These brokers subsequently sold the information to insurance companies, which allegedly used the data to determine and increase insurance rates. The settlement addresses concerns about how automakers collect, handle, and share personal vehicle data, particularly when information generated through connected vehicle services can influence decisions made by third-party organizations.

The agreement resolves claims brought by 35 U.S. attorneys general concerning GM's Smart Driver program, which enrolled millions of drivers between 2016 and 2024 before being discontinued. The program was promoted as a way for customers to improve their personal driving safety. However, GM was accused of violating customer privacy and its commitment not to sell their driving information without permission. Other government regulators have also been reviewing the company's practices concerning the collection and handling of driver data.

Many customers who enrolled in Smart Driver were also subscribers to GM's OnStar safety, navigation, and diagnostic service. This overlap raised additional concerns about the handling and sharing of information generated through connected vehicle services. The allegations centered on the collection and commercial use of customers' driving behavior and location information, including the transfer of that data to brokers who subsequently supplied it to insurance companies.

Under the settlement, GM must introduce stricter requirements governing its future collection and sharing of driving information. The company is required to limit the driving data it collects and obtain drivers' express consent before collecting or sharing that information. These conditions establish additional obligations concerning customer permission and data handling, addressing central issues raised in the allegations surrounding the Smart Driver program.

The USD 220 million agreement follows an earlier settlement in California in May 2026, when GM paid USD 12.75 million to resolve an investigation into allegations that it sold driver information to two data brokers. The latest agreement represents a separate resolution involving claims from 35 U.S. attorneys general, extending the regulatory scrutiny of the company's driver data practices beyond the earlier California investigation.

Industry Impact & Outlook

The settlement highlights the regulatory and business implications of collecting and commercially sharing personal information generated by connected vehicles. For automakers offering driving-related programs and integrated services, the agreement establishes the importance of limiting data collection and obtaining explicit customer consent before information is collected or shared. The involvement of 35 U.S. attorneys general also demonstrates the breadth of the regulatory scrutiny surrounding GM's Smart Driver program. Together with the May 2026 California settlement, the agreement places driver privacy, data-sharing practices, and customer authorization at the center of the company's obligations concerning connected vehicle information.

Frequently Asked Questions

How much has GM agreed to pay in the driver data settlement?
GM agreed to pay USD 220 million to settle allegations concerning the collection and sale of drivers' private behavior and location data. The agreement resolves claims brought by 35 U.S. attorneys general over the company's Smart Driver program. The allegations involved the transfer of driving information to brokers, who subsequently sold it to insurance companies. The settlement also introduces requirements governing how GM collects and shares driving data in the future, including obtaining drivers' express consent.

What was GM's Smart Driver program?
GM's Smart Driver program was a customer-facing initiative promoted as a way to help drivers improve their personal driving safety. It enrolled millions of drivers between 2016 and 2024, when the program was discontinued. However, GM was accused of violating customer privacy and its commitment not to sell driving information without permission. The resulting allegations concerned the collection and sale of drivers' behavior and location data to brokers, who then supplied that information to insurance companies.

How was GM accused of using drivers' personal data?
GM was accused of collecting drivers' private behavior and location information and selling it to data brokers without the required customer permission. Those brokers subsequently sold the information to insurance companies, which allegedly used it to determine and increase insurance rates. Many customers enrolled in Smart Driver were also subscribers to GM's OnStar safety, navigation, and diagnostic service. The allegations therefore raised concerns about the collection and commercial sharing of information associated with connected vehicle services.

What changes must GM make under the settlement?
GM must limit the driving information it collects and obtain drivers' express consent before collecting or sharing that data. These requirements establish additional conditions for the company's future handling of vehicle-generated personal information. The agreement addresses concerns about the collection and commercial distribution of customer driving data without permission. It also reinforces the importance of customer authorization in data-sharing arrangements involving connected vehicle services. The requirements form part of the USD 220 million settlement resolving claims brought by 35 U.S. attorneys general.

Did GM previously settle a driver data investigation in California?
Yes. In May 2026, GM paid USD 12.75 million to settle a California investigation into allegations that it sold drivers' personal data to two brokers. That agreement preceded the separate USD 220 million settlement reached on October 29, which resolved claims brought by 35 U.S. attorneys general. Both agreements concern allegations involving GM's handling and sale of driver information. The two settlements represent separate resolutions of investigations into the company's driver data practices.