General Motors (GM) has agreed to pay $12.75 million to resolve allegations that it illegally sold the location and driving data of hundreds of thousands of Californians to two data brokers, California Attorney General Rob Bonta announced on Friday. The settlement comes after the Detroit-based automaker had given 'numerous statements reassuring drivers that it would not do so,' Bonta said.
Violation of Consumer Trust
'General Motors sold the data of California drivers without their knowledge or consent,' Bonta stated. 'This trove of information included precise and personal location data that could identify the everyday habits and movements of Californians.' The $12.75 million settlement, which is subject to court approval, covers civil penalties. Additionally, California is restricting GM's use of consumer-driving data and instituting a five-year ban on selling such data to any data broker.
Risks of Location Data
Once the precise location of a vehicle is revealed, sensitive information can be gleaned, including where people live, work, go to school, or attend church. When that data enters the data broker industry, it becomes nearly impossible for consumers to control its spread. 'Modern cars are rolling data-collection machines,' said Brooke Jenkins, San Francisco's district attorney. 'Californians must have confidence that they know what data is being collected, how it is being used, and what their opt-out rights are. Those duties fall on the automobile companies.'
Growing Scrutiny of Carmakers
Carmakers have faced increasing scrutiny over their ability to access driver data and share it with insurance companies and data brokers. The New York Times investigated GM and other automakers in 2024, examining how consumers' driving behavior was shared with insurers, leading some companies to raise rates based on the data. California began investigating GM and other car manufacturers in 2023, in conjunction with several district attorneys and the California Privacy Protection Agency.
Details of the Settlement
The investigation found that from 2020 to 2024, GM sold the names, contact information, geolocation data, and driving-behavior data of hundreds of thousands of Californians to data brokers Verisk Analytics and LexisNexis Risk Solutions. GM collected the data through its OnStar technology, an in-vehicle security subscription service. GM reportedly made approximately $20 million from these sales. Bonta noted that California drivers would not see increased insurance premiums from GM's sales because insurers are prohibited from using driving data to set rates in the state. However, GM misled consumers by stating in its privacy policy that it would not sell driving or location data, then handed it over to data brokers without consent.
GM did not immediately return a request for comment.
