General Motors settles lawsuit over selling customer driving data

A two-year legal battle between General Motors and California prosecutors, led by Attorney General Rob Bonta, over the alleged misuse of customer driving data has concluded, with GM agreeing to pay $12.75 million in penalties. 

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In a press release announcing the settlement, the AG alleges that GM sold "the names, contact information, geolocation data, and driving behavior data of hundreds of thousands of Californians" to data brokers, including Verisk Analytics and LexisNexis Risk Solutions. And, as the statement points out, "If you know the precise location of a person’s car, then you know an enormous amount of personal, sensitive information about that person — their home, work, children’s school, place of worship."

The original facts of the case were uncovered by The New York Times back in 2024, where the focus was on whether insurance companies were using this driving data to charge some customers higher insurance rates. But the attorney general's investigation concluded that "California drivers were not directly impacted by GM’s sales of data," because under California's strict insurance laws, "insurers are prohibited from using driving data to set insurance rates." 

In addition to the $12.75 million settlement, GM has agreed to stop selling driving data to any consumer reporting agencies for five years, delete any current driving data within 180 days (unless expressly permitted to keep the data by the driver), and develop and maintain its own privacy program to assess its data collection practices and mitigate the risks of a data breach.

While the settlement is definitely a win for consumer privacy, you shouldn't feel too bad for GM just yet. According to the attorney general's own calculations, GM earned roughly $20 million for the sale of its OnStar data, so even with the hefty settlement, they're still turning a nice profit.