GM has agreed to pay $12.75 million to settle claims it illegally sold the location and driving data of hundreds of thousands of California residents between 2020 and 2024.
The details: The settlement marks California’s largest penalty to date under the California Consumer Privacy Act and the first case tied to the state’s data minimization rule, according to Attorney General Rob Bonta, highlighting the severity of the allegations, Automotive World reported.
The data sold included names, contact information, GPS location records, speeds traveled, and instances of rapid acceleration.
The information was collected through GM’s OnStar subscription service and its Smart Driver product.
The data was sold to Verisk Analytics and LexisNexis Risk Solutions, which provide insurers with risk and data products.
According to Automotive World, GM’s privacy policy explicitly stated that it would not sell driving or location data, but Bonta said the company did so anyway without properly informing customers or obtaining consent.
Why it matters: The settlement highlights growing scrutiny over how automakers collect, use, and monetize customer data, which could lead to more consumers questioning dealers about privacy disclosures, data-sharing practices and opt-in consent.
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Between the lines: The GM settlement underscores broader industry concerns about consumer vehicle data as automakers continue ramping up tech offerings designed to make vehicles more intuitive to driver behavior.
According to Telemetry, a strategic consulting firm, about 90% of new vehicles collect information about driver behavior, CNN reported.
Consent for the collection and sale of that data is often buried in the fine print of vehicle purchase contracts alongside pricing, loan terms, and warranties.
The growing number of AI-enhanced in-vehicle features adds another layer to consumer data concerns.
What they’re saying: “Technically, they had permission,” said Sam Abuelsamid, an automotive analyst at Telemetry, per CNN. “This is something people should know, but don’t.”
Bottom line: As vehicles become increasingly connected, data privacy risks are becoming both a legal and reputational issue for the auto industry, making transparency around connected services and customer consent increasingly important for dealers at the point of sale.
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