General Motors has agreed to pay $12.75 million to settle claims that it illegally sold the location and driving data of hundreds of thousands of Californians to data brokers, California Attorney General Rob Bonta announced on Friday. The settlement, which is subject to court approval, includes civil penalties and a five-year ban on GM selling such data to any data broker.
Bonta stated that GM had made 'numerous statements reassuring drivers that it would not do so' before selling the data without their knowledge or consent. The data included precise location information that could reveal everyday habits and movements, such as where people live, work, or attend school or church.
The investigation, launched in 2023 in conjunction with several district attorneys and the California Privacy Protection Agency, found that between 2020 and 2024, GM sold names, contact information, geolocation data, and driving behaviour data to Verisk Analytics and LexisNexis Risk Solutions. The data was collected through GM's OnStar technology, and the company reportedly made approximately $20 million from these sales.
San Francisco District Attorney Brooke Jenkins commented that 'modern cars are rolling data-collection machines' and emphasised the need for consumers to know what data is collected and how it is used. While California law prohibits insurers from using driving data to set rates, Bonta noted that GM misled consumers by stating in its privacy policy that it would not sell such data, only to hand it over without consent.
