GM to Pay $12.75 Million for Selling Customer Driving Data Without Consent in California Settlement

General Motors (GM) has agreed to pay a $12.75 million settlement to resolve a lawsuit in California accusing the automaker of improperly collecting and selling customers' driving data through its OnStar service without obtaining explicit consent.

The lawsuit, filed by California Attorney General Rob Bonta, alleged that GM violated state privacy laws by gathering personal information from millions of drivers and then selling that data to third-party brokers. The complaint specifically targeted GM’s use of OnStar, a connected vehicle service, to collect and monetize sensitive driving data.

According to the settlement, GM did not admit to any wrongdoing but agreed to the financial penalty and to implement changes to its data collection practices. The agreement was announced on June 11, 2024.

Key Details of the Settlement

• Total Settlement Amount: $12.75 million
• Alleged Violation: Misuse of customer driving data collected via OnStar
• State Involved: California
• Date Announced: June 11, 2024
• Plaintiff: California Attorney General Rob Bonta

GM’s Response and Changes

In a statement, GM acknowledged the settlement and outlined steps it will take to address the concerns raised in the lawsuit. The company stated it would:

• Enhance transparency regarding data collection practices
• Obtain explicit consent from customers before collecting or sharing driving data
• Implement stricter controls on how third-party data brokers access customer information

GM also emphasized that it remains committed to protecting customer privacy and complying with all applicable laws.

Background on the Lawsuit

The lawsuit against GM was initiated following an investigation by the California Department of Justice, which found that the automaker had been collecting detailed driving data—including location, speed, and braking patterns—from vehicles equipped with OnStar. This data was then sold to data brokers, who in turn resold it to advertisers, insurers, and other entities without the explicit knowledge or consent of the drivers.

Attorney General Rob Bonta stated,

"Consumers have a right to know how their personal information is being used and shared. Today’s settlement holds GM accountable for failing to protect the privacy of millions of Californians."

Impact on Consumers and Industry

The settlement is expected to have broader implications for the automotive industry, particularly for companies that rely on connected vehicle services to collect and monetize customer data. It underscores the growing scrutiny over data privacy practices in the tech and automotive sectors, especially as vehicles become increasingly connected and data-driven.

Experts suggest that this case could set a precedent for future enforcement actions against companies that fail to prioritize consumer privacy. The settlement also highlights the importance of clear communication and consent mechanisms in data collection practices.