GM to Pay $220 Million in 36-State Driver Data Privacy Settlement
GM will pay $220 million to 36 states over driver data sales, accept third party privacy audits and require express consent for collection and sharing.
Summary
General Motors will pay $220 million to settle a lawsuit from attorneys general in 36 states alleging it illegally sold drivers’ behavior and precise location data to brokers, which resold it to insurers. The agreement, announced October 29, 2026, requires express consent before GM collects or shares driving and location data, matching separate California and Federal Trade Commission agreements, and adds an independent assessment of GM’s privacy program.
GM ended Smart Driver in 2024. The free feature in its connected car apps tracked and rated driving, geolocation and seat belt use; brokers including LexisNexis and Verisk sold the information to insurers, potentially affecting customer rates. The FTC finalized a January 2026 order barring GM and OnStar from sharing certain consumer data. GM says it will no longer sell identifiable vehicle, location or driving information, although it may disclose anonymized data, and has revised its privacy policy and created a consumer Privacy Center.
At its October 2026 GM Forward event, GM announced a personal AI assistant for OnStar, its 30-year-old safety and roadside service. Connected cameras will provide live views and crash and safety recordings, while voice controls will manage climate settings and answer vehicle questions. GM says customers can manage permissions, recordings are encrypted and time-limited, and neither GM nor OnStar can access Connected Camera recordings, but customers withholding data will likely lose access to some features.
Positives
- $220 million will resolve claims brought by attorneys general representing 36 states.
- Express consent will be required before GM collects or shares customers’ driving and location information.
- Independent third party assessments will test GM’s compliance with its privacy program.
- GM says it has stopped selling identifiable vehicle, location and driving data.
- Encrypted, time-limited Connected Camera recordings will include customer-managed permissions and remain inaccessible to GM and OnStar.
Risks & concerns
- Smart Driver tracked and rated geolocation, driving behavior and seat belt use before GM discontinued it in 2024.
- LexisNexis and Verisk sold driver information to insurers, potentially affecting customers’ insurance rates.
- The FTC’s January 2026 order bars GM and OnStar from sharing certain consumer data after earlier privacy practices.
- GM may continue disclosing anonymized vehicle data to selected partners.
- Customers who decline data sharing will likely receive limited access to some connected vehicle features.