General Motors agrees to $12.75 million California driver privacy settlement
The deal resolves allegations that the company sold names, geolocation, and driving behaviour data of hundreds of thousands of Californians to Verisk Analytics and LexisNexis Risk Solutions via its OnStar program.
General Motors has agreed to pay $12.75 million in civil penalties to a group of law enforcement agencies led by California Attorney General Rob Bonta. The settlement resolves allegations that the automaker sold the names, contact information, geolocation data, and driving behaviour data of hundreds of thousands of Californians to data brokers Verisk Analytics and LexisNexis Risk Solutions via its OnStar program.
Bonta's office alleges that GM made roughly $20 million from these data sales, which occurred without driver knowledge or consent. While the company stated the agreement specifically addresses "Smart Driver," a product discontinued in 2024, the settlement underscores the principle of data minimisation in California's privacy law, asserting that companies cannot retain data for later use without consent.
As part of the agreement, GM will cease selling driving data to consumer reporting agencies for five years. The automaker must also delete any retained driver data within 180 days unless customer consent is obtained. Additionally, GM has agreed to request that LexisNexis and Verisk delete the data they currently hold.
The announcement comes amid broader scrutiny of how automakers share customer information. In 2024, The New York Times reported that manufacturers, including GM, were sharing customer driving behaviour data with insurance companies, raising concerns among customers about potential rate increases. However, Bonta's office noted that the data did not lead to increased insurance prices in California, likely because state laws prohibit insurers from using such data for rate setting.
This settlement is distinct from GM's previous agreement with the Federal Trade Commission, which resulted in a final order banning the company and OnStar from selling certain data to consumer reporting agencies. The new deal reinforces steps GM says it has taken to strengthen its privacy practices following the discontinuation of the Smart Driver product.
