GM Hit with $12.75 Million Fine for Illegally Selling Driver Location Data in California

General Motors (GM) continues to face legal and financial repercussions following a 2024 New York Times exposé that exposed the automaker’s practice of secretly selling driver data. The latest development comes as the California Attorney General announced a $12.75 million settlement with GM for the illegal sale of location and driving data belonging to hundreds of thousands of Californians.

In January 2025, the Federal Trade Commission (FTC) issued a ruling banning GM from selling location data for the next five years, marking a significant crackdown on the company’s data-sharing practices.

GM’s Data Collection and Sharing Practices

The controversy surrounding GM’s data practices dates back to 2015, when the company began collecting driving data—including speed, braking, and location—through its OnStar telematics system. However, widespread reproduction of this data only emerged in the last two years.

According to Consumer Rights Wiki, GM has shared driving data from over 14 million vehicles—including 1.8 million in Texas alone—with commercial data brokers such as LexisNexis and Verisk. These brokers analyze the data to generate ‘driving scores’, which are then sold to insurance companies. Reports indicate that these scores have led to higher insurance premiums and coverage denials for consumers who were unaware their data was being collected and sold.

The investigation also revealed that GM shared customer location data with law enforcement through subpoenas rather than requiring warrants—a practice that directly contradicts the company’s public privacy commitments.

Regulatory Action and Financial Penalties

After the New York Times exposé detailed how a Chevy Bolt driver’s telematics data was used to increase their insurance rates without consent, GM discontinued its Smart Driver data-sharing program.

Since then, GM has faced regulatory scrutiny, resulting in settlements with the FTC and the California Attorney General. A pending case in Texas suggests further legal challenges ahead. Reports indicate that GM generated approximately $20 million from selling OnStar-mined data, with penalties expected to far exceed this amount.

The California settlement is the largest under the California Consumer Privacy Act (CCPA) to date, setting a new record for the state.

Consumer Rights and Industry Implications

This case highlights growing concerns over customer surveillance and data-selling practices in the automotive industry. As automakers and insurance companies seek new revenue streams, experts urge consumers to carefully review the terms and conditions of vehicle convenience features to understand how their data may be used.

The outcome of this saga may signal a shift toward stronger consumer protections in an era where data monetization has become commonplace.