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NewsThe GuardianMay 8, 2026United States

General Motors to pay $12.75 million settlement over driver data sales

General Motors has agreed to a $12.75 million settlement with California to resolve allegations that it sold the location and driving data of hundreds of thousands of residents to third-party brokers without consent. The agreement includes a five-year ban on the company selling such data to brokers and restricts how it uses consumer driving information.

Read the full story at The Guardian

Why It Matters

California residents who used GM's OnStar service between 2020 and 2024 had their personal location and driving habits shared with s, leading to this state-level enforcement action that mandates new privacy restrictions on the automaker.

Key Facts

  • General Motors agreed to pay $12.75 million in civil penalties to the state of California.
  • The settlement includes a five-year ban on GM selling consumer driving data to any data broker.
  • GM is restricted in how it uses consumer-driving data moving forward.
  • Between 2020 and 2024, GM sold the names, contact information, geolocation, and driving behavior of hundreds of thousands of Californians.
  • Data was collected through GM's OnStar in-vehicle security subscription service.
  • GM reportedly earned approximately $20 million from the sale of this data to Verisk Analytics and LexisNexis Risk Solutions.
  • The California Attorney General stated that GM had previously provided numerous assurances to drivers that it would not sell their data.
  • The settlement is currently subject to court approval.
  • California law prohibits insurers from using driving data to set insurance premiums, preventing direct rate increases for affected drivers.

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