General Motors to Pay $220 Million to Settle Allegations It Sold Drivers’ Data to Insurers: Oregon AG Says ‘People Bought a Car, Not a Tracking Device’

General Motors Co. (NYSE:GM) agreed Thursday to pay $220 million to settle allegations that it sold millions of drivers’ location and driving-behavior data to brokers, who then sold the information to insurers that used it in part to set rates, sometimes increasing premiums.

GM Accused Of Selling Private Driving Data

"People bought a car, not a tracking device," Oregon Attorney General Dan Rayfield said, announcing the settlement involving 35 states and Washington, D.C.

The bipartisan investigation found that GM’s Smart Driver program tracked motorists between 2016 and 2024, recording speeding, hard braking, acceleration and trip details. Regulators alleged GM marketed the service as a safety tool while promising not to share information with insurers without permission.

However, investigators found that brokers purchased the information for insurance products. GM dealerships also allegedly enrolled customers without consent through registration procedures linking Smart Driver with OnStar services.

Regulators said the OnStar app incorrectly told more than 370,000 motorists they had not enrolled, even while GM collected their data. The findings follow earlier congressional scrutiny of automakers’ data-sharing practices.

Settlement Requires Stronger Driver Privacy Protections

The agreement requires GM to obtain explicit consent before collecting or sharing driving information, restrict data collection and undergo independent privacy assessments. Dealerships must also strengthen training and oversight.

GM said the settlement reinforces existing privacy improvements. "Safer, more helpful and personalized experiences are enabled by connected vehicle data," a spokesperson told Reuters, emphasizing customer transparency and choice.

Federal Regulators Previously Restricted GM Data Sharing

The settlement follows earlier FTC action against GM. In January 2026, the FTC finalized restrictions that ban certain disclosures to consumer reporting agencies for five years and require stronger consumer controls.

GM also agreed in May to pay $12.75 million to settle a separate California investigation. The latest agreement resolves state allegations without establishing that a court found GM liable.

Price Action: GM shares were trading 0.51% at $85.28 in pre-market trading on Friday, according to Benzinga Pro data.

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