General Motors (GM) has reached a significant settlement regarding driver privacy, led by California Attorney General Rob Bonta. The agreement comes in response to concerns about the company's data-sharing practices.
In a report from 2024, it was revealed that GM, among other automakers, had been sharing customers' driving behavior data with insurance companies. This raised alarms among consumers, who feared that their insurance premiums might increase as a result of this data usage.
The California Attorney General's office stated that GM sold personal information, including names, contact details, geolocation, and driving behavior data of numerous Californians to data brokers like Verisk Analytics and LexisNexis Risk Solutions. This data was reportedly collected through GM's OnStar service, generating approximately $20 million for the company from these sales.
Despite these allegations, Bonta's office clarified that the data sharing did not lead to higher insurance costs in California, attributing this to state laws that prohibit insurers from using driving data to determine rates.
As part of the settlement, GM will pay $12.75 million in civil penalties and will cease selling driving data to consumer reporting agencies for five years. Furthermore, GM is required to delete any remaining driver data within 180 days, unless explicit consent is obtained from customers, and to urge LexisNexis and Verisk to do the same.
Bonta emphasized that GM sold driver data without proper consent, despite assurances to the contrary. The settlement mandates GM to discontinue these practices, highlighting the importance of data minimization in California's privacy legislation.
This settlement follows a prior agreement with the Federal Trade Commission, which also addressed GM's data sales practices, reinforcing the company's commitment to enhancing its privacy protocols.
GM stated that this settlement pertains to its discontinued Smart Driver product and reflects ongoing efforts to bolster privacy measures within the organization.
