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GM Fined $12.75M for Selling Driver Data
9 May
Summary
- GM settled for $12.75 million to resolve data sale claims.
- The automaker sold location and driving data without consent.
- A five-year ban restricts GM's future data sales.
General Motors will pay $12.75 million to resolve allegations of illegally selling location and driving data belonging to hundreds of thousands of Californians. State Attorney General Rob Bonta announced the settlement on Friday, noting GM had previously assured drivers it would not sell this information. The Detroit-based automaker collected this sensitive data, including precise location and driving behavior, through its OnStar technology between 2020 and 2024.
This data was sold to data brokers Verisk Analytics and LexisNexis Risk Solutions, generating approximately $20 million for GM. The settlement, pending court approval, also imposes a five-year restriction on GM's sale of consumer driving data to any data broker. San Francisco District Attorney Brooke Jenkins highlighted that modern cars are significant data collectors, emphasizing the need for transparency regarding data collection and usage.
California began its investigation into GM and other manufacturers in 2023, in conjunction with district attorneys and the California privacy protection agency. While GM's data sales are not expected to increase insurance premiums for Californians, Bonta stated that GM misled consumers by selling data despite its privacy policy indicating otherwise.
