General Motors (GM) has agreed to pay $12.75 million to settle a California data privacy lawsuit that accused the automaker of selling driver location and behavior data to third parties, including insurance companies.
The proposed settlement, filed on Friday, mandates that GM:
- Cease selling customer information to data brokers for a period of five years.
- Provide California drivers with the ability to opt out of location data collection by its OnStar service.
This agreement follows a 2024 report by The New York Times, which revealed that automakers, including GM, had been sharing detailed driving data—such as speed, hard braking, and rapid acceleration—with data brokers. These practices raised significant privacy concerns among consumers and regulators alike.
The lawsuit, filed in California, underscores growing scrutiny over how automakers handle sensitive driver data. The settlement is pending court approval.
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