General Motors has reached a settlement agreement to resolve allegations regarding the unauthorized sale of driver and location data. The company will pay $220 million to address claims brought forward by a coalition of 36 US attorneys general.
The legal action focused on the now-discontinued Smart Driver program. This system tracked driving habits, specifically recording acceleration, braking patterns, and trip distances. The investigation found that GM shared this information with data brokers, which allowed insurance companies to access the data and subsequently increase premiums for drivers.
Under the terms of the settlement, GM must implement stricter data collection policies. The company is now required to obtain express consent from drivers before gathering any information. Additionally, the automaker must limit the scope of the driving data it collects from its vehicles.
The states involved in the coalition include New York, Florida, Michigan, Nevada, and Pennsylvania, with the case co-led by the attorneys general of Oregon and Washington. This agreement follows a separate settlement in California, where GM previously paid $12.75 million to resolve similar claims.
