General Motors (GM) has agreed to pay millions of dollars to settle a case in California accusing the company of illegally selling drivers’ personal data.
California Attorney General Rob Bonta announced that General Motors (GM) will pay $12.75 million to resolve claims that it improperly collected and stored data from hundreds of thousands of California drivers who used its OnStar vehicle connectivity service.
According to a lawsuit brought by the California Attorney General and local District Attorneys, the data collected included sensitive information like subscribers’ names, phone numbers, home addresses, and driving behavior – specifically speed, hard braking, and rapid acceleration. It also included the precise GPS locations of where subscribers drove and parked their vehicles.
The lawsuit also claimed that GM told OnStar customers their data would only be used for services like calling for help, giving directions, or helping them become better drivers.
In 2020, General Motors began selling drivers’ information to companies like Verisk Analytics and LexisNexis Risk Solutions without asking its customers for permission. A recent lawsuit claims this practice broke California’s privacy and consumer protection laws.
GM profited from an arrangement where they continued to share driver data with Lexis and Verisk. These companies used this data to update driver profiles, which they then sold to insurance companies. In total, GM earned around $20 million nationally from these data sales.
In addition to a $12.75 million fine, the agreement requires General Motors to stop selling customer driving data to reporting agencies for five years. GM must also remove the data it currently holds within six months and ask Verisk Analytics and LexisNexis Risk Solutions to do the same.
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2026-05-18 10:22