Detroit‑based General Motors announced a $220 million settlement that resolves a multi‑state class‑action lawsuit accusing the company of selling private driver data to insurance firms. Michigan Attorney General Dana Nessel confirmed the state will receive more than $7 million of the settlement funds.
What the lawsuit alleged
The suit centered on GM’s Smart Driver program, which operated from 2016 through 2024. The program was marketed as a safety‑enhancement tool that would help owners improve their driving habits. Participants were told their data would remain private.
According to the attorney general’s office, GM instead shared the collected behavioral data with data brokers under contracts that required the information be used for insurance products. The data was then used by insurers to set premiums, leading some drivers to see their rates increase.
How drivers were affected
More than 370,000 drivers were enrolled in the program, yet the OnStar app incorrectly indicated that many were not participating. When the error was discovered, GM quietly removed the affected drivers from the program without notifying them, leaving their data in the hands of third‑party brokers and insurers.
Attorney General Nessel said most participants signed up for Smart Driver when they purchased a GM vehicle at a dealership, and that GM employees accepted the program’s terms on behalf of customers without obtaining explicit consent.
Settlement details
The settlement includes payments to Michigan and 35 additional states, including 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, and Wisconsin.
While the agreement does not include an admission of wrongdoing, GM will implement new privacy safeguards to ensure drivers are fully informed about data collection and sharing practices moving forward.
State response
Attorney General Nessel praised the settlement as a step toward greater consumer protection. “Michigan families deserve transparency and accountability when it comes to their personal information,” she said. “This settlement sends a clear message that companies must respect the privacy rights of Michigan drivers.”
Consumer‑advocacy groups welcomed the outcome, noting that the settlement provides resources for ongoing education about data privacy and may deter similar practices in the automotive industry.
What’s next for drivers
GM has pledged to update its OnStar platform to clearly display enrollment status and to obtain explicit opt‑in consent before sharing any driver data. The company also plans to work with state regulators to develop industry‑wide standards for data handling.
Drivers who believe they were affected by the data‑sharing practices can contact the Michigan Attorney General’s office for more information about the settlement and any potential restitution.
Original reporting: Warren | FOX 2 Detroit — read the source article.
