General Motors to Pay $220 Million to End Lawsuit Over Driver Data Sales
General Motors agreed on Thursday to pay $220 million to settle a lawsuit brought by a coalition of 36 state attorneys general. The suit alleges GM sold private driving‑behavior and location data gathered through its Smart Driver program to data brokers without informing drivers.
Oregon and Washington led the coalition. Their investigation found that GM heavily incentivized dealerships to enroll customers in OnStar and the Smart Driver program, offering sales‑staff bonuses tied to enrollment numbers and ranking dealerships by those figures.
How the Smart Driver Program Collected Data
Millions of drivers signed up for the program between 2016 and 2024, often at the dealership when purchasing a vehicle. The service recorded trip start times, mileage, braking frequency, speeding incidents and other driving details. According to the attorneys general, GM then sold this personal, identifiable information to data brokers under contracts that limited use to insurance products.
The OnStar app mistakenly told about 370,000 drivers they were not enrolled in Smart Driver, even though their data were being collected and sold. GM later removed those drivers from the program without notifying them, leaving the data with insurers and brokers.
- 1Review any OnStar or telematics agreements on your GM vehicle.
- 2Check your insurance statements for rate changes linked to driving data.
- 3Contact your state attorney general’s office if you suspect misuse.
- 4Consider opting out of future data‑collection programs.
Source: Courthouse News Service
Settlement Requirements
Under the settlement, GM must obtain affirmative, express consent before gathering or sharing any driving or location data. The company must also limit data collection to what is necessary for a specific purpose and conduct privacy assessments. Dealerships will receive training to stop non‑consensual enrollments, and the $220 million will be distributed to the participating states.
What This Means for Drivers
Anyone who owned a GM vehicle and enrolled in Smart Driver or OnStar between 2016 and 2024 may have had personal data shared without permission. While the settlement does not provide direct compensation to individual drivers, the new consent rules should prevent future unauthorized data collection.
Drivers should review any current vehicle‑service agreements, especially those tied to telematics or subscription services, and verify what data are being collected. If a driver believes their data were misused, they can contact their state attorney general’s office for guidance.
When to Consider Legal Help
If a driver suspects that the sale of their driving data led to higher insurance premiums or other harms, consulting a consumer‑rights attorney may help determine whether a separate claim is viable.
What this means: our conclusions
- Good newsClearer Consent Rules for Vehicle Data
The settlement forces GM to ask drivers for clear permission before any data collection, giving consumers more control over their information.
- Good newsPotential Insurance Premium Relief
If insurers used the sold data to raise rates, drivers may see lower premiums now that the practice is halted.
- What to watchDealership Incentive Practices Under Review
Bonuses tied to enrollment numbers may be restructured, reducing pressure on sales staff to push data‑sharing programs.
- RiskNo Direct Compensation for Drivers
The $220 million settlement is paid to states, not directly to individual drivers, so personal recovery may require separate action.
- What to doMonitor Future Privacy Settings
Consumers should regularly review vehicle service agreements and privacy settings to ensure ongoing compliance.
| Before Settlement | After Settlement |
|---|---|
| Data collected without explicit driver consent | Drivers must give affirmative consent before data collection |
| Dealership bonuses linked to enrollment numbers | Dealerships receive training; incentive structures under scrutiny |
Source: Courthouse News Service
- said doj.state.or.us
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This article is general information based on Courthouse News Service and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 30, 2026.
Source: Courthouse News Service
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