Skip to main content

ArabGT

General Motors To Pay Nearly $13 Million To Settle Driver Privacy Case

General Motors To Pay Nearly $13 Million To Settle Driver Privacy Case

General Motors has agreed to pay $12.75 million to settle an investigation in California after being accused of selling detailed driving data belonging to hundreds of thousands of drivers to two data brokerage companies.

According to California Attorney General Rob Bonta, the data was collected through the OnStar service and included users’ names, phone numbers, home addresses, and sensitive information related to where they drove and where they stopped. The records also reportedly contained details about speeding and harsh acceleration incidents between 2016 and 2024.

The settlement, which is still awaiting court approval, places strict limits on how GM can use customer driving data. It also includes a five year ban on selling personal information. California officials stated that the company generated nearly $20 million in revenue across the United States from these data sales.

General Motors To Pay Nearly $13 Million To Settle Driver Privacy Case

Bonta said General Motors sold data belonging to California drivers without their knowledge or consent, despite repeatedly assuring customers that it would not do so. He added that the amount of information shared was detailed enough to reveal highly sensitive patterns about people’s movements and daily routines.

GM responded by saying the settlement is tied to its Smart Driver product, which was discontinued in 2024. The company also stated that it has strengthened its privacy practices and is committed to being more transparent with customers about how their data is used and what options are available to them.

Earlier, the U.S. Federal Trade Commission described the incident as a clear betrayal of consumer trust. In January 2025, General Motors and its OnStar division agreed not to sell or share geolocation and sensitive driving behavior data with consumer reporting agencies for a period of five years.

Trending Now