General Motors to Pay $12.75 Million Settlement for Selling Drivers’ Location and Data

General Motors faces a significant legal and financial reckoning, agreeing to a $12.75 million settlement over allegations of unlawfully selling sensitive location and driving data of hundreds of thousands of Californians. This resolution follows a state investigation, initiated in 2023, which found that GM, despite public assurances to the contrary, shared this trove of personal information with data brokers Verisk Analytics and LexisNexis Risk Solutions between 2020 and 2024. The data, collected through GM's OnStar technology, included precise location details that could reveal intimate aspects of individuals' lives, such as their homes, workplaces, and places of worship.

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General Motors sold the data of California drivers without their knowledge or consent.

California Attorney General Rob Bonta highlighted the deceptive nature of GM's actions, stating the automaker provided "numerous statements reassuring drivers that it would not do so" before proceeding to sell the data without consent. This breach of trust is particularly concerning given the potential for such data to be exploited. While the settlement aims to penalize GM and restrict future data sales, it also raises broader questions about the pervasive data collection practices of modern vehicles, which function as "rolling data-collection machines," as noted by San Francisco District Attorney Brooke Jenkins.

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This trove of information included precise and personal location data that could identify the everyday habits and movements of Californians.

The settlement, which requires court approval, not only imposes financial penalties but also restricts GM's use of consumer-driving data, including a five-year prohibition on selling it to data brokers. This action by California authorities underscores a growing trend of scrutiny towards automakers regarding their data-sharing practices. The investigation, conducted in conjunction with several district attorneys and the California privacy protection agency, reflects a concerted effort to protect consumer privacy in an increasingly data-driven automotive industry. GM's alleged profit of approximately $20 million from these sales further emphasizes the financial incentives behind such practices, making regulatory oversight and consumer protection paramount.

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Modern cars are rolling data-collection machines.