General Motors has agreed to settle privacy allegations brought by the District of Columbia and the attorneys general of 35 states, following revelations that data from its smart-driver system was shared with data brokers and sold to insurance companies. Some drivers said they did not realize they had consented to the use of their driving data, which in some cases contributed to higher insurance premiums.
GM marketed the system as a way for parents to monitor teenage drivers and for adults to track driving behavior. In 2024, however, reports revealed that the automaker had been sharing information about drivers with brokers, who then sold it to insurers.
Last year, GM and its OnStar subsidiary reached a settlement with the Federal Trade Commission that prohibits them from sharing certain driver data with third parties. The agreement was completed in January of this year and bars the companies from sharing geolocation data or driving-behavior data for five years. GM also discontinued its entire lineup of smart-driver products at that time.
States demand independent privacy oversight
The latest agreement follows a lawsuit filed by the District of Columbia and the 35 states’ attorneys general after they joined forces to pursue GM over its handling of driver data.
GM said in a statement, as reported by Reuters, “Connected car data then enables more convenient and personalized experiences, and GM is committed to being clear about what information is used, how it is protected, and the choices customers have about what they share.”
According to TechCrunch, the settlement with the states is notable because it does not simply rely on GM’s assurance that it complies with its privacy policy. Instead, it would require a third party to determine whether the company is meeting its privacy obligations.
Source: arstechnica.com
