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GM’s $220M Payout Shows How Cars Can Secretly Sell Your Driving Data

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GM’s $220M Payout Shows How Cars Can Secretly Sell Your Driving Data

The automaker must now obtain express consent before collecting or sharing driver data.

GM has settled a multi-state suit over selling customer data without consent.

General Motors has agreed to pay $220 million to 35 states and the District of Columbia to settle a major privacy lawsuit over the company’s sale of driver data from its Smart Driver program, which dealerships offered to drivers from 2016 to 2024.

In 2024, The New York Times published a damning investigation into the program, revealing that, in some cases, data on drivers’ habits could be used by insurance companies to set rates. Some drivers saw significant premium increases after GM sold their driving history, and one owner was told a 22% premium increase resulted from driving information supplied by a data broker, according to a press release from the New York attorney general’s office.

The data collection was described as “spying,” and GM quickly ended the program that year. In 2025, GM settled with the Federal Trade Commission over Smart Driver and OnStar location data, agreeing to a five-year ban on selling driver data.

Attorneys general in many of the states involved in the $220 million settlement posted announcements about it, including Anthony G. Brown of Maryland.

“Without asking permission, General Motors sold its customers’ driving and location data, which, in some cases, was used by insurance companies to set drivers’ rates,” Brown said in a release. “Because of our settlement, GM can no longer prioritize profit over Marylanders’ privacy.” 

The settlement requires GM to obtain affirmative express consent from consumers before collecting or disclosing consumer driving and location data.


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