GM to Pay $220 Million Settlement Over Smart Driver Data Sharing

General Motors has agreed to a $220 million settlement with the District of Columbia and 35 states after investigators accused the automaker of collecting and selling driver behavior data without proper consent. The payout follows allegations that the company’s Smart Driver feature tracked metrics like speed and acceleration before sharing the records with data brokers.

The Tech TL;DR:

• General Motors settled a multi-state investigation for $220 million regarding its defunct Smart Driver data-sharing program.
• Attorneys general claimed the system monitored acceleration, speeding, and driving times without explicit consumer knowledge.
• The settlement requires GM to secure affirmative, express consent for any future collection of location or driving behavior data.

Connecticut Leads 35 States in GM Lawsuit

Connecticut Attorney General William Tong led a coalition of attorneys general from 35 states and the District of Columbia in suing the automaker. Tong described the feature by stating, “GM turned private vehicles into mobile insurance surveillance machines without consumer consent or awareness.” The investigation marked one of Connecticut’s very first actions under the Connecticut Data Privacy Act.

Under the terms of the new agreement, individual states will receive varying allocations from the total payout. Connecticut and New York are slated to receive approximately $6 million and $12 million, respectively.

The Rise and Fall of the Smart Driver Feature

General Motors originally marketed the Smart Driver system as a way for parents monitoring teen drivers or adults tracking their driving behavior. However, in 2024 it emerged the automaker shared that harvested information with data brokers who subsequently sold it to insurance companies. Many motorists discovered the data-sharing arrangement only after their auto insurance became more expensive.

The controversy triggered immediate regulatory scrutiny. Last year, GM and its OnStar subsidiary entered into a settlement with the Federal Trade Commission prohibiting the transfer of specific driver data to third parties, which was finalized in January. That initial federal agreement banned the two companies from sharing geolocation or driver behavior data for five years. General Motors discontinued Smart Driver across its entire range in 2024.

GM Must Obtain Express Consent for Data Collection

The multi-state settlement mandates that General Motors obtain affirmative, express consent from drivers before collecting or disclosing any information related to driving behavior and vehicle locations. A company spokesperson addressed the resolution through an official statement:

“This agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we’ve taken to strengthen our privacy practices. Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it’s protected, and the choices customers have about what they share.”

Disclaimer: The technical analyses and security protocols detailed in this article are for informational purposes only. Always consult with certified IT and cybersecurity professionals before altering enterprise networks or handling sensitive data.

More on Million Settlement: $800 Million Settlement for New York Archdiocese Abuse Claims