GM agrees to pay $12.75M in California driver privacy settlement

General Motors reached a privacy settlement with a group of law enforcement agencies led by California Attorney General Rob Bonta. The agreement addresses allegations that the company sold customer driving data without consent. Bonta's office alleged that GM sold the names, contact information, geolocation data and driving behavior data of hundreds of thousands of Californians to data brokers Verisk Analytics and LexisNexis Risk Solutions. The office said the data was collected through the OnStar program and that GM made roughly 20 million dollars from the sales. The office also said the data did not lead to increased insurance prices in California. State law prohibits insurers from using driving data to set rates. As part of the settlement GM agreed to pay 12.75 million dollars in civil penalties. The company must stop selling driving data to consumer reporting agencies for five years. It must delete retained driver data within 180 days unless customers consent and must request that the data brokers delete the information. Bonta said GM sold the data without customer knowledge or consent despite reassurances to the contrary. The settlement requires GM to end these practices and underscores the importance of data minimization under California privacy law. GM had previously settled with the Federal Trade Commission over its data sales. A final order from the FTC bans the company from selling certain data to consumer reporting agencies. GM said the settlement addresses its Smart Driver product which the company discontinued in 2024. The company said the agreement reinforces steps taken to strengthen privacy practices. GM added that it is committed to being clear and transparent with customers about their information and choices.