GM to pay Connecticut more than $6 million in driver data settlement - CT Insider

General Motors Settles Smart Driver Data Case for $6 Million in Connecticut

General Motors has agreed to pay Connecticut more than $6 million to settle allegations that the automaker illegally sold customers’ private driving data to brokers, who then funneled the information to insurers to hike rates. The payment forms a slice of a larger $220 million multistate settlement reached with 35 other states, according to an announcement made Thursday by Connecticut Attorney General William Tong.

GM to pay Connecticut more than $6 million in driver data settlement https://t.co/g7QejFjmog

— https://x.com/Record_Journal/status/2115934762221048088

The agreement requires the Detroit-based automotive giant to obtain explicit consent before collecting or disclosing customer data going forward. State officials say the tracking program operated quietly for years without meaningful driver awareness.

“GM turned private vehicles into mobile insurance surveillance machines without consumer consent or awareness,” Tong said in a news release. “GM profited from the sale of this personal driving data, and consumers paid the price in the form of higher premiums.”

Tracking Millions of Drivers Without Clear Consent

Investigators found that GM tracked more than 10.2 million Americans, including at least 123,143 Connecticut residents, between 2016 and 2024 through its “Smart Driver” program. While the company initially told customers that their driving data would not be shared with insurers without express permission, the multistate coalition discovered a different reality behind closed doors.

According to Tong, GM sold personal information to data brokers under contracts specifically designating the data for insurance products. The records handed over to insurers were granular, detailing how many times a person operated a vehicle, the exact start and end times of each trip, instances of hard braking and rapid acceleration, and whether the driver exceeded speed limits.

Insurers then utilized these driving habits to adjust customer rates upward. The program finally came to an end in 2024 following an investigation published by The New York Times, which brought the data-sharing pipeline to light.

Corporate Response and Ongoing Legal Fallout

“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,” the GM spokesperson said.

Beyond the financial payout, the settlement mandates that General Motors limit the volume of driving data it collects and institute a comprehensive data privacy program. The company also agreed to implement mandatory training requirements at dealerships to protect consumers from unauthorized data collection schemes.

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State officials noted that separate consumer class-action lawsuits against GM remain pending in the courts. Meanwhile, the Federal Trade Commission reached a settlement with the automaker early last year that delivered limited injunctive relief but featured no monetary penalties.