GM to Pay $12.75 Million in California Settlement Over Drivers’ Data Sales
Summary
California reached a $12.75 million settlement with GM over alleged collection and sale of drivers’ location and driving data without adequate notice or consent. Requirements include sales restrictions, data deletion, and stronger privacy controls.
Key points
- California Attorney General Rob Bonta announced the settlement over alleged violations of the California Consumer Privacy Act.
- GM allegedly collected drivers’ data through OnStar and Smart Driver from 2020 to 2024 and shared it with Verisk Analytics and LexisNexis Risk Solutions for insurance-related driver scoring.
- California officials alleged GM failed to provide adequate notice or obtain consent and retained data longer than necessary.
- GM must stop selling driving data to consumer reporting agencies and brokers for five years.
- GM must delete retained driving data within 180 days unless consumers consent to its retention, ask the two data recipients to delete previously received data, and strengthen its privacy program.
- Officials said California drivers were unlikely to have faced higher insurance premiums because state law prohibits insurers from using driving data to set rates.
Article Details
- Event Type
- California privacy enforcement settlement over alleged unlawful collection and sale of drivers’ data
- Impact
- General Motors agreed to pay $12.75 million in civil penalties. The settlement requires GM to stop selling driving data to consumer reporting agencies and brokers for five years, delete retained data within 180 days unless consumers consent to retention, ask LexisNexis and Verisk to delete previously received data, and strengthen its privacy compliance program. California officials said drivers were unlikely to have faced higher insurance premiums because state law prohibits insurers from using driving data to set rates.
People
Vendors
General MotorsCalifornia Attorney General Rob Bonta announced a $12.75 million settlement with General Motors over allegations that it violated the California Consumer Privacy Act by collecting and selling drivers’ location andLexisNexis Risk SolutionsThe violations arise from allegations that the car maker illegally collected and sold Californians’ driving and location data to data brokers Verisk Analytics and LexisNexis Risk Solutions, between 2020 and 2024.Verisk AnalyticsThe violations arise from allegations that the car maker illegally collected and sold Californians’ driving and location data to data brokers Verisk Analytics and LexisNexis Risk Solutions, between 2020 and 2024.
Products
OnStarThe case centered on data gathered through OnStar and Smart Driver and led to record penalties plus new restrictions on GM’s data retention and sales practices.Smart DriverThe case centered on data gathered through OnStar and Smart Driver and led to record penalties plus new restrictions on GM’s data retention and sales practices.