General Motors to pay $12.5 million to settle claims that it illegally sold California driver data

This is read by an automated voice.Please report any issues or inconsistencies here.

General Motors has agreed to pay $12.5 million dollars to settle claims that the automaker illegally sold location and driving data of hundreds of thousands of Californians, state officials said Friday.The settlement is an example of how automakers are facing more scrutiny over allegations that they share driver data with the insurance industry, influencing how much people pay for coverage.California, though, has a law that bars insurers from using driving data to set rates.

“If we get word that a company is illegally collecting, storing or selling consumer data, we won’t hesitate to look under the hood and hold them accountable to the law,” California Atty.Gen.

Rob Bonta said in a news conference.The settlement is the largest California Consumer Privacy Act penalty in the state’s history, Bonta said.

The act gives California consumers the right to request that businesses disclose what data they collect.They can also opt out of the sharing or sale of their personal information and request that businesses delete their data.Investigators found that from 2020 to 2024, GM sold driver data, including names, contact information, location data and driving behavior data, to data brokers Verisk Analytics Inc.

and LexisNexis Risk Solutions.The data came from a driver’s use of OnStar, which is owned by GM and provides roadside assistance, navigation and other services.GM said the agreement addresses a product called OnStar Smart Driver that the company discontinued in 2024.

The product was meant to help improve people’s driving but faced privacy concerns from consumers.In 2024, GM also ended its partnership with the two data brokers and said it would enhance privacy controls.

“Vehicle connectivity is central to a modern and safe driving experience, which is why we’re committed to being clear and transparent with our customers about our practices and the choices and con...