General Motors has agreed to pay $220 million to resolve allegations from attorneys general in 35 US states and the District of Columbia that it sold drivers’ private behaviour and location data to brokers, who then sold it to insurers. The claims focused on GM’s Smart Driver programme, which ran from 2016 until 2024 and involved millions of drivers. Regulators said GM promoted the programme as a safety tool but failed to uphold promises not to sell data without drivers’ consent.
The settlement requires GM to restrict the driving data it collects and to obtain drivers’ express consent before collecting or sharing such data. This follows a $12.75 million settlement with California and a separate agreement with the US Federal Trade Commission to limit data sharing for five years. Insurers including Allstate, Progressive and Geico use telematics to set premiums, claiming it rewards safe driving.
For insurers and automakers, this settlement signals increased regulatory attention on telematics and personal data use. Firms must review consent processes and data handling practices to avoid similar legal and reputational risks.
