General Motors is shelling out for selling your data. This time, it’s the California state Attorney General pressing the case and negotiating a settlement that sees a state record of more than $12 million in penalties for privacy violations, plus serious restrictions on what GM can sell for the next five years.
State Says GM Sold Precise Driver Data
California Attorney General Rob Bonta’s office alleged that GM “sold the data of California drivers without their knowledge or consent and despite numerous statements reassuring drivers that it would not do so.” The AG said that the data GM sold included “precise and personal location data that could identify the everyday habits and movements of Californians.”
In the complaint, the Attorney General claimed that from 2020 through 2024, GM sold the data to data brokers Verisk Analytics and LexisNexis Risk Solutions. The complaint stated that GM made $20 million nationwide from selling data. GM got the data through the OnStar connected vehicle system that it has been installing on new vehicles for decades.
CalPrivacy, the state’s privacy protection agency, started an investigation into GM and other automakers in 2023. During that investigation, a report from the New York Times broke the news that GM and other automakers were selling data. That report resulted in an investigation and penalties from the Federal Trade Commission, but multiple states were pursuing their own.
The California investigation involved the state’s Department of Justice, along with several District Attorneys. As a result, the state alleges that GM “failed to give consumers any notice of the sales to LexisNexis and Verisk and misled consumers by implying that data would only be used to provide OnStar subscribers with requested services.” The complaint also alleges that GM stored driving and location data long after it was used to provide the OnStar service, a violation of state law.
“This agreement addresses Smart Driver, a product we discontinued in 2024, and reinforces steps we’ve taken to strengthen our privacy practices. Vehicle connectivity is central to a modern and safe driving experience, which is why we’re committed to being clear and transparent with our customers about our practices and the choices and control they have over their information.”
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