Auto Data Deal: GM Pays $220 Million for Driver Tracking

General Motors will pay $220 million to resolve allegations that the automaker illegally sold private driver behavior data and location information to third parties. The settlement, announced on October 29, 2026, stems from the company's practice of sharing detailed driving habits with data brokers. These brokers then sold the information to insurance companies, which used it to help set premiums. The agreement includes a requirement for GM to obtain affirmative, express consent from consumers before collecting or disclosing such data in the future.

The issue traces back to a program called Smart Driver, which GM launched in 2016. The tool was designed to track driving habits and improve safety. GM told drivers that their data would not be shared with insurers without explicit consent. However, a coalition of 36 attorneys general found that GM sold this information to data brokers under contracts that specified the data would be used for insurance products. The automaker did not disclose this specific use to the drivers who enrolled in the program.

Most customers signed up for Smart Driver at GM dealerships when purchasing a vehicle. The company used a single sign-up process for both Smart Driver and its OnStar services. Dealership employees allegedly accepted the terms and conditions on behalf of customers without their direct consent. This practice occurred while GM heavily incentivized dealerships to maximize OnStar enrollment. Sales employees received bonuses based partly on the number of customers they signed up, and dealerships were ranked by their enrollment numbers.

GM's internal systems also failed to notify drivers about their data tracking status. The OnStar app mistakenly told more than 370,000 drivers that they were not enrolled in Smart Driver, even though the company was actively collecting and selling their data. GM later unenrolled these drivers without informing them of the error. The company left the collected data with the data brokers and insurance companies.

The data GM sold was personal and specific. Insurers received records showing how often a person drove, the start and end times of each trip, the frequency of hard braking or acceleration, and whether the driver exceeded the speed limit. Insurance companies used this information to change rates, sometimes increasing premiums. After the New York Times documented these practices, GM discontinued the Smart Driver program.

Mana Moriarty, executive director of the Hawaii Office of Consumer Protection, stated that Hawaii consumers deserve control over their personal data. She noted that the settlement makes clear that companies will be held accountable when they collect and sell driving and location information without a customer's knowledge or consent. The state of Hawaii will receive $2,861,340 through the settlement.

The settlement terms include a comprehensive data privacy program for GM. The company must limit the driving data it collects and protect personal information going forward. The agreement mandates internal and external data protection and privacy program assessments. It also requires oversight and training at GM dealerships to prevent consumers from being enrolled in data collection schemes without their consent.

The case was co-led by the attorneys general of Washington and Oregon. The Executive Committee of Colorado, Connecticut, Delaware, Illinois, Kentucky, Maryland, Minnesota, New Jersey, Utah, and Vermont assisted in the effort. The Hawaii Office of Consumer Protection joined the coalition, along with the attorneys general of Alabama, Alaska, Arizona, the District of Columbia, Florida, Idaho, Kansas, Maine, Massachusetts, Michigan, Mississippi, Nevada, New Hampshire, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Virginia, and Wisconsin.

The settlement marks the conclusion of the investigation into GM's data practices from 2016 to 2024. The automaker has agreed to the financial and operational changes required by the 36-state coalition. The distribution of the $220 million will follow the terms outlined in the agreement, with Hawaii receiving its allocated share.