Michigan AG, coalition reach $220M settlement with GM for sharing drivers' private data
MGN LANSING, Mich. -- Michigan Attorney General Dana Neesel announced Thursday that she has joined a coalition of 36 attorneys general in a $220 million settlement with General Motors over the allegations that the company sold consumers' private driver behavior data and location info without consent to third parties.
The data was allegedly sold to data brokers who then sold it to insurance companies, who then used it in part to set insurance rates.
Nessel's office announced Michigan will receive $7,205,319 through the settlement.
As part of the settlement, GM is now required to obtain affirmative express consent from consumers before collecting or disclosing driving and location data.
This settlement does not provide restitution for consumers, but Nessel notes there is a nationwide private class-action lawsuit seeking monetary relief which is still pending.
“Drivers deserve to know what information about them is being collected and how it may affect their wallets,” said Nessel. “Discovering after the fact that a company has been tracking and selling their driving data without their consent is unacceptable. This settlement will hold GM accountable for its past conduct and secure meaningful safeguards, so drivers have greater control over their information in the future.”
The coalition states most customers who signed up for Smart Driver did so at the GM dealership while buying their car.
In many cases, dealership employees allegedly accepted terms and conditions on behalf of customers without consent.
The coalition added that between 2016 and 2024 GM was incentivizing dealerships to sign up as many customers for OnStar as possible.
The data collected and sold is reported to be personal, identifiable, and specific. Insurers obtained data showing how many times a person drove their vehicle, the start and end times of each drive, how many times they braked or accelerated quickly, and whether they over the speed limit.
GM is now mandated to have internal and external data protection and privacy program assessments. GM also agreed to oversight and training requirements at their dealerships to protect consumers against signing up for data collection schemes without their consent.
Besides Michigan, the AG coalition includes Alabama, Alaska, Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Hawai’i, Idaho, Illinois, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Utah, Vermont, Virginia, Washington, Wisconsin.
You can read the full settlement below: