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GM to pay $220 million to settle allegations it violated consumers' privacy

The settlement requires new consent rules and privacy safeguards after investigators said 10 million drivers’ data was sold for insurance use.

  • On Thursday, a 36-state coalition led by Illinois Attorney General Kwame Raoul announced General Motors will pay $220 million to settle allegations it illegally sold private driver behavior and location data to third-party brokers and insurers.
  • From 2016 to 2024, GM enrolled millions of motorists in its "Smart Driver" feature, pitching it as a safety tool while secretly selling detailed driving metrics to brokers under contracts earmarked specifically for insurance products.
  • Dealership employees often enrolled customers without consent, and the OnStar app inaccurately told more than 370,000 drivers they were not tracked; insurers then used speeding and braking data to adjust premiums.
  • The settlement requires GM to obtain affirmative consent before collecting future data and implement stricter privacy oversight; Illinois receives approximately $10.5 million and Michigan receives about $7.2 million.
  • Michigan Attorney General Dana Nessel stated, "Drivers deserve to know what information about them is being collected," though a separate nationwide class-action lawsuit seeking cash damages remains active in court.
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RiverBender.com broke the news in Alton, United States on Thursday, October 29, 2026.
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