GM reaches $220M settlement with Michigan, 35 other states - FOX 2 Detroit

General Motors Reaches $220 Million Settlement With 36 States Over Driver Data Tracking

General Motors will pay $220 million to resolve allegations that the automaker secretly collected and sold the private behavioral data of millions of drivers to third-party data brokers and insurance companies, FOX 2 Detroit reported. The multi-state settlement addresses a widespread tracking practice tied to GM’s Smart Driver program, which operated from 2016 to 2024.

Michigan Attorney General Dana Nessel announced that her state will receive more than $7 million from the agreement. A coalition of more than half the states in the U.S. participated in the class-action lawsuit against the Detroit-based manufacturer.

How the Smart Driver Program Tracked Millions Without Consent

The controversy centers on the Smart Driver program, which was initially marketed to drivers as a tool to help monitor and improve their own road safety. Instead, investigators found that information regarding driving habits was funneled to data brokers under contracts explicitly designated for insurance products. As a result, many motorists experienced unexpected rate hikes on their auto insurance premiums.

According to Nessel’s office, many customers were automatically enrolled when purchasing a vehicle at a dealership, where employees accepted program terms on their behalf without explicit consent. GM’s internal systems also failed to accurately notify drivers about the active tracking. The company’s OnStar application mistakenly told roughly 370,000 users that they were not enrolled in the monitoring program even while collecting their telemetry data.

The state attorney general’s office noted that GM eventually unenrolled these drivers quietly without disclosing the software error, leaving their previously harvested data in the hands of brokers and insurance providers.

The Scope of the Multi-State Coalition

The legal action drew participation from a broad geographic coalition spanning thirty-six jurisdictions. The states and districts involved in the settlement include Alabama, Alaska, Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Hawai’i, Idaho, Illinois, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Utah, Vermont, Virginia, Washington, and Wisconsin.

GM’s Response and Ended Program

This agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we’ve taken to strengthen our privacy practices. Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it’s protected, and the choices customers have about what they share.