General Motors has reached a $220 million settlement to resolve legal claims regarding the unauthorized sale of driver data. The agreement follows allegations that the automaker shared sensitive information collected through its OnStar Smart Driver feature with third-party data brokers between 2016 and 2024.
The collected data included precise geolocation, speeding incidents, and hard braking events. This information was sold to companies like LexisNexis and Verisk, which used it to compile credit reports. Some insurance providers utilized these reports to adjust premiums or deny coverage to drivers.
In January 2025, the Federal Trade Commission imposed a five-year ban on GM, prohibiting the company from sharing geolocation and driving behavior data with consumer reporting agencies. The FTC now requires GM to obtain explicit consumer consent before data collection and provide an opt-out mechanism.
The settlement involves attorneys general from 36 U.S. states, with Washington State leading the legal action. Additionally, reports indicate that 370 000 drivers were incorrectly informed that they were not enrolled in the program, despite their data being processed and sold to brokers.
