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GM to pay $220 million after selling customer Smart Driver data
Ars Technica • • business
Key Points:
- General Motors marketed its Smart Driver system as a tool for parents and adults to monitor driving behavior, but in 2024 it was revealed that GM shared this data with brokers who sold it to insurance companies, leading to higher insurance costs for some drivers.
- Many affected drivers reported they were unaware they had consented to their driving data being shared for insurance purposes.
- In response, GM and its OnStar subsidiary reached a settlement with the FTC last year, finalized in January 2024, banning them from sharing geolocation or driver behavior data with third parties for five years, and GM discontinued the Smart Driver program.
- GM has now settled lawsuits brought by the District of Columbia and 35 states following coordinated legal action by their attorneys general.
- GM stated its commitment to transparency about data usage, protection, and customer choices regarding shared connected vehicle data.
