General Motors has agreed to pay $220 million to settle claims from US states that it sold drivers’ private driving and location data without proper consent. The settlement was announced on Thursday, October 29, and it covers a feature GM stopped offering in 2024, according to TechCrunch and The Hill.
What was alleged. The states claimed GM sold drivers’ driving behavior and location data to data brokers, which then sold it on to insurance companies that could use it when setting rates. The data came from a free feature in GM’s connected-car apps called Smart Driver, which tracked and rated driving behavior and seat belt use. In March 2024, The New York Times reported that GM and its OnStar service had collected and sold precise location and driving data to third parties, including LexisNexis and Verisk, according to TechCrunch.
The numbers. The reports differ on how many states are involved. TechCrunch says 36 states, while The Hill says 35 states and the District of Columbia. Texas sued GM separately in 2024 and was not part of this settlement, according to reports. Another report says GM’s app incorrectly told more than 370,000 drivers they were not enrolled in Smart Driver when they actually were.
What GM must change. GM must get drivers’ express consent before it collects or shares driving and location data, and a third party must assess its privacy program for compliance. These terms match earlier agreements with California and the Federal Trade Commission, according to TechCrunch. Some coverage says GM did not admit wrongdoing, while TechCrunch’s article does not address it.
GM’s response. In a statement, GM said the settlement addresses Smart Driver, a product it ended in 2024. The company says it will no longer sell vehicle information tied to an individual, their location or their driving behavior. It may still share anonymized data that is not linked to individuals with certain partners. GM has also updated its privacy policy and created a consumer-facing Privacy Center.
How this fits with the FTC order. In January 2026, the FTC finalized an order barring GM and OnStar from sharing certain consumer data. The FTC order and the multistate settlement both require more transparency and explicit consent for certain data collection, so the new deal adds a financial penalty and state enforcement to rules that were already in place.
Why it matters. Modern cars collect large amounts of data, from location and speed to braking and seat belt use. The case shows how that information can travel from a dashboard app to a broker to an insurer without the driver understanding it. For US drivers, the practical lesson is to check the privacy settings in a car’s app and to read what a free feature collects. For the car industry, the settlement sets a clearer standard that consent has to be explicit.
What to watch. Look for how other carmakers respond, whether more states or regulators act on connected-car data, and whether the consent rules in this settlement become the norm. Drivers who used Smart Driver should watch for any notices about their data from GM or their state attorney general.
Sources: TechCrunch and The Hill, with details from the FTC order as described in those reports. Figures are as reported by those outlets.
Renaissance Center, Detroit (file image), Wikimedia Commons, CC BY 2.0
