$220 million from GM for driver data

General Motors, aka GM, reached a $220 million settlement over claims related to driver data collected through its OnStar Smart Driver system.

The process is carried out by the attorney general's offices of 36 states, led by Washington state. Additionally, the dossier focuses on how the sensitive information of millions of drivers is collected and used.

Between 2016 and 2024, millions of GM users participated in the OnStar Smart Driver program. The program was introduced on the grounds that it would help improve driving habits. However, users were told that the data would not be sold. Despite this, it is claimed that detailed location and driving information is sold to big data intermediaries such as LexisNexis and Verisk.

How GM driver data was shared: hard braking, speeding and night driving

Information shared included behaviors such as hard braking, speeding, and driving late at night. This data was used in reports about drivers. It is also stated that some insurance companies evaluate these reports when determining premiums.

Moreover, in some cases, it is claimed that drivers are not insured. Thus, a feature that was expected to improve driving turned into a factor that affects access to insurance and the amount to be paid. About two weeks after the news that brought the application to the agenda, GM terminated its data sharing agreements with LexisNexis and Verisk. However, this step did not stop the investigations.

It is claimed that dealers give approval on behalf of customers

According to Washington State Attorney General Nick Brown, many drivers are automatically enrolled in Smart Driver when subscribing to OnStar services. It is also alleged that some dealer employees accept terms of use on behalf of customers without their consent. Because GM gave incentives to dealers to increase OnStar subscriptions. It is stated that employees are paid bonuses according to the number of customers they bring into the system.

One of the remarkable claims in the file is about 370 thousand drivers. These people were shown through the application that they were not registered with Smart Driver. However, it is claimed that they are in the program and their data is sold. GM subsequently removed users from the program without notice. However, it is stated that data brokers and insurance companies keep old information.

Five-year ban on data sharing for GM

The US Federal Trade Commission (FTC) announced a regulation in January 2025. Accordingly, the company will not be able to share location and driving behavior data with consumer reporting agencies for five years. The regulation also requires explicit consent from users before connected vehicle data is collected. In addition, vehicle owners are also given the opportunity to turn off the collection of sensitive location and driving data.

In its statement regarding the new settlement, the company stated that it had strengthened its privacy practices. He also argued that connected vehicle data contributes to safer and personalized services. It has committed to being open about what information is used, how it is protected, and what options customers have in sharing. The settlement amount was determined as 220 million dollars.