General Motors will pay $220 million to resolve a multistate investigation into the sale of drivers' personal driving and location data. New York's share is $12,054,341, and the agreement also requires changes to the company's privacy practices.
New York Attorney General Letitia James and 35 other attorneys general secured the settlement after investigating GM's Smart Driver program, according to the attorney general's office.
From 2016 through 2024, the program tracked information including the number and timing of vehicle trips, rapid braking or acceleration, and speeding. The office said more than 700,000 New York drivers were enrolled.
GM marketed Smart Driver as a way for motorists to improve their driving and said their information would not be shared with insurers without express consent. Investigators found that the company instead sold information to data brokers under contracts specifying its use for insurance products. Brokers could then sell the information to insurers, potentially affecting premiums.
Many customers enrolled at dealerships through a combined signup process for Smart Driver and OnStar, GM's connected service for navigation, security and roadside assistance. Investigators said dealership employees sometimes accepted terms for customers without their consent, while GM rewarded dealers partly for connected-service enrollments.
The investigation also found that the OnStar app incorrectly told more than 370,000 drivers they were not enrolled in Smart Driver even as GM collected and sold their data. The company later unenrolled them without explaining the mistake and left previously collected information with brokers and insurers, the office said.
The settlement requires GM to limit the driving information it collects and establish a comprehensive privacy program. It must conduct internal assessments, obtain third-party privacy and data-protection assessments, and introduce dealership oversight and training to protect customers against enrollment without consent.
James said drivers should not have to worry that a manufacturer is tracking their movements and selling information that could affect insurance costs. The announced state payment does not establish an individual refund amount for affected motorists.
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