GM to Pay $12.75 Million to Settle California Driver Privacy Investigation

General Motors (GM) has agreed to pay $12.75 million to resolve a California investigation into allegations that the Detroit-based automaker illegally sold detailed information on the driving habits of hundreds of thousands of Californians to two data brokers, state Attorney General Rob Bonta said on Friday.

The settlement, subject to court approval, includes $12.75 million in civil penalties. It also restricts GM’s use of consumer driving data collected from subscribers to its OnStar service and imposes a ban on selling such data to brokers. In addition, it introduces a five-year prohibition on the sale of personal data.

The information sold by GM included names, phone numbers and home addresses. It also contained GPS location data showing where OnStar subscribers drove and parked their vehicles.

From 2016 to 2024, GM also tracked vehicle speeds and instances of rapid acceleration, according to the state. Media reports indicated that such driving behaviour data was shared with auto insurers, who allegedly used it to justify premium increases in some cases. However, Bonta said California law prohibits insurers in the state from using such information to set rates.

California said GM reportedly made about $20 million nationwide from these data sales. The state added that the data was collected through consumers’ use of OnStar, a service that provides features such as navigation assistance and emergency response in the event of a crash.

“General Motors sold the data of California drivers without their knowledge or consent and despite numerous statements reassuring drivers that it would not do so. This trove of information included precise and personal location data that could identify the everyday habits and movements of Californians,” Bonta said.

GM said the settlement “addresses Smart Driver, a product we discontinued in 2024, and reinforces steps we’ve taken to strengthen our privacy practices.”

The company added that it remains committed to transparency with customers regarding data practices, and to providing users with control over their personal information.

The US Federal Trade Commission said earlier this year that GM’s conduct amounted to an “egregious betrayal of consumers’ trust”. In January 2025, the FTC said GM and its subsidiary OnStar had agreed not to disclose or sell sensitive vehicle geolocation and driver behaviour data to consumer reporting agencies for five years.

In 2023, a California state privacy agency launched investigations into the privacy practices of connected vehicles. Media reports in 2024 suggested that several automakers, including GM, had been sharing driving behaviour data with insurance companies, with some insurers raising premiums based on this information, Bonta said.

However, Bonta added that California drivers did not experience rate hikes as a result of GM’s data sales, as state insurance laws prohibit insurers from using driving data to set insurance rates.

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