GM to pay $12.75M for selling driving data of Californians
What's the story
General Motors (GM) has agreed to a $12.75 million settlement over allegations of illegally selling the location and driving behavior data of hundreds of thousands of Californians. The deal was announced by California Attorney General Rob Bonta. The settlement comes after GM had issued "numerous statements reassuring drivers that it would not do so," Bonta said in a statement.
Data breach
GM sold data without consent
Bonta stressed that GM sold California drivers' data without their knowledge or consent. He added that the information included "precise and personal location data that could identify the everyday habits and movements of Californians." The settlement, which is subject to court approval, is for civil penalties. It also restricts GM's use of consumer-driving data and imposes a five-year ban on such information being sold to any data broker.
Privacy concerns
Once vehicle's location is known, sensitive information can be obtained
Brooke Jenkins, San Francisco's district attorney, emphasized the privacy concerns associated with vehicle location data. She said that once a vehicle's exact location is known, sensitive information like where people live or work can be easily obtained. Jenkins stressed that "Californians must have confidence that they know what data is being collected, how it is being used and what their opt-out rights are."
Data brokers
GM sold data to brokers for years
From 2020 to 2024, GM sold the names, contact info, geolocation data, and driving behavior of hundreds of thousands of Californians to data brokers Verisk Analytics and LexisNexis Risk Solutions. The company collected this information through its OnStar technology, a subscription service for in-vehicle security. According to reports, GM made approximately $20 million from these sales.
Insurance impact
Bonta's statement on insurance premiums
Bonta clarified that California drivers wouldn't see increased insurance premiums from GM's data sales because insurers are prohibited from using driving data to set their rates in the state. However, he criticized GM for misleading consumers by stating in its privacy policy that it would not sell driving or location data, only to hand it over to data brokers without consent.