GM to Pay $220 Million to Settle Driver Data Privacy Claims with 35 States

General Motors (GM) agreed to pay $220 million to settle allegations it improperly sold drivers' behavior and location data to brokers, who supplied it to insurers that could use it to set or raise insurance rates. The settlement covers 35 U.S. states and the District of Columbia. The case centered on GM's Smart Driver program, which enrolled millions of drivers between 2016 and its discontinuation in 2024. Authorities alleged the automaker marketed the service as a driving-safety tool while sharing customer data without adequate permission. Under the agreement, GM must limit the driving information it collects and obtain express consent before collecting or sharing certain data. A third party will assess compliance with its new privacy program. The deal follows a $12.75 million California settlement in May and a separate Federal Trade Commission agreement barring GM from sharing vehicle geolocation and driver behavior data with consumer reporting agencies for five years.