Home / Business and Economy / GM Agrees to Pay $12.75M Over Driver Data Lawsuit
GM Agrees to Pay $12.75M Over Driver Data Lawsuit
11 May
Summary
- GM will pay $12.75 million to settle a California data privacy lawsuit.
- The company must stop selling customer data to brokers for five years.
- GM must also delete collected driver data and get consent for use.
General Motors has agreed to a $12.75 million settlement to resolve a California data privacy lawsuit. The suit alleged that the automaker improperly sold driver location and driving behavior data. This agreement marks a significant step in addressing concerns over the privacy of vehicle information.
As part of the proposed settlement, GM is mandated to cease selling customer data to third-party brokers for a period of five years. Additionally, the company must provide drivers with the ability to control data collection by its OnStar service.
The settlement also requires GM to delete all driver data implicated in the lawsuit. Prior to collecting or using any personal driving data, the automaker must now obtain explicit customer consent. This aligns with California's privacy laws, emphasizing data minimization.
This resolution follows a previous settlement with the Federal Trade Commission finalized in January. The FTC's settlement also prohibits GM and OnStar from disclosing driver data to third-party brokers for five years, reinforcing the commitment to data protection.
