GM to Pay $220 Million in Settlement Over Drivers' Private Data
New Jersey will receive $8.9 million under a multistate agreement requiring clearer consent and stronger safeguards for drivers' information.
General Motors has agreed to pay $220 million to settle allegations that it sold drivers' behavior and location information to data brokers, which then provided the information to insurance companies. New Jersey will receive $8.9 million under the agreement announced Thursday.
A coalition of 36 attorneys general investigated GM's Smart Driver program, which operated from 2016 to 2024. Officials said drivers were told the service could help them improve their driving and that their information would not be shared with insurers without their express consent.
According to the states, the data included trip times, speeding, seat-belt use, hard braking and rapid acceleration. Insurers could use that information when setting premiums. The states alleged that some dealership employees accepted enrollment terms on customers' behalf without permission, while GM's app incorrectly told about 370,000 drivers they were not enrolled.
The settlement requires affirmative express consent before GM collects or discloses driving and location data. It also calls for limits on collection, a data-privacy program, internal and outside assessments, and dealership oversight and training.
GM said the agreement concerns a product it discontinued in 2024 and reinforces changes it has made to its privacy practices. The company said it is committed to explaining what information is used, how it is protected and what choices customers have about sharing it.
The agreement resolves civil allegations about past conduct. It should not be read as a finding that the discontinued Smart Driver program is still operating. New Jersey's official announcement provides details about the settlement and its privacy requirements.