GM Resolves California Lawsuit Over Allegations of Selling Driving Data to Insurers

General Motors has reached a $12.75 million settlement in a California data privacy lawsuit that accused the company of selling driver location and data. As part of the proposed settlement, GM will halt the sale of customer information to data brokers for five years and will allow California drivers to opt out of location data collection through its OnStar service.

The automaker faced multiple lawsuits following a 2024 report that revealed it, along with other manufacturers, had been sharing driving data—like speed, hard braking, and rapid acceleration—with data brokers and insurance companies, which allegedly adjusted their pricing based on this information.

In January, the Federal Trade Commission finalized a settlement with GM and its OnStar subsidiary, prohibiting them from disclosing driver data to third-party brokers for five years. Under the California settlement, GM is required to provide “clear and conspicuous” privacy notices regarding data collection when drivers sign up for OnStar. Additionally, the company must delete all driver data involved in the lawsuit and obtain customer consent before collecting or using any driving data.

“This agreement addresses Smart Driver, a product we discontinued in 2024, and reinforces steps we’ve taken to strengthen our privacy practices,” said a GM spokesperson. “Vehicle connectivity is central to a modern and safe driving experience, which is why we’re committed to being clear and transparent with our customers about our practices and the choices and control they have over their information.”

California Attorney General Rob Bonta emphasized the significance of the settlement, stating, “Today’s settlement requires General Motors to abandon these illegal practices and underscores the importance of data minimization in California’s privacy law—companies can’t just hold on to data and use it later for another purpose.”