Cybersecurity

GM Agrees to $220 Million Data Privacy Settlement

General Motors will pay $220 million to resolve a multi-state investigation and lawsuit concerning the unauthorized sale of driver data.

Radwan AbdulhadiEditor and technology writer

Published: October 30, 2026 · Updated: October 30, 2026 · 3 min read

GM Agrees to $220 Million Data Privacy Settlement — Image: Engadget

Multi-State Settlement Over OnStar Smart Driver Program

General Motors has reached a massive legal resolution regarding its OnStar Smart Driver program. According to a report by Engadget, GM has agreed to pay $220 million to settle a lawsuit brought by the [attorneys](https://www.atg.wa.gov/news/news-releases/gm-pay-220m-sharing-drivers-private-data-case-co-led-washington) general of 35 US states and the District of Columbia. The legal action followed years of unauthorized tracking and data sharing that impacted millions of vehicle owners across the country.

The controversy initially came to light when an investigation detailed how the automaker enrolled millions of customers into the Smart Driver program between 2016 and 2024. During this period, the system tracked driving habits such as hard braking, late-night driving, and speeding. This information was subsequently sold to data brokers for insurance purposes.

Unauthorized Enrollment and Dealership Incentives

Investigators revealed that many drivers were never informed that they were participating in the tracking program. The automaker actively incentivized dealerships with bonuses to sign up as many customers for Smart Driver as possible. In numerous instances, dealership employees allegedly accepted terms and conditions for customers without obtaining their express permission.

Furthermore, communication errors compounded the issue for vehicle owners. The states [said](https://www.azag.gov/press-release/attorney-general-mayes-announces-settlement-gm-company-pay-220-million-sharing) that more than 370,000 drivers were incorrectly told they were not enrolled, even though their data was actively being tracked and sold. Although GM eventually unenrolled those individuals, it failed to notify them of the mistake while continuing to monetize their driving habits.

Image related to the report from Engadget · Source: Engadget

Impact on Insurance Premiums and Consumer Privacy

The data harvested by the automaker was described by investigators as "personal, identifiable and specific." Because this detailed driving behavior was sold to insurance companies, many consumers experienced unexpected increases in their vehicle insurance premiums. Drivers had no prior knowledge that their daily commutes and driving tendencies were being packaged and sold to third-party financial entities.

The legal scrutiny surrounding connected vehicle data tracking has intensified across the automotive and technology sectors. Regulatory bodies and state enforcers have increasingly targeted practices where connected car telemetry is commercialized without explicit, informed consumer consent.

Settlement Terms and Mandated Compliance Measures

Under the terms of the new agreement, GM is required to significantly limit the driving data it collects from customers and enforce stricter protections for their personal information moving forward. Additionally, the company will be subjected to mandated internal and external data protection and privacy program assessments. Dealerships will also receive additional training and oversight to prevent unauthorized program sign-ups.

This multi-state resolution follows other regulatory actions taken against the automaker. Earlier in the year, federal regulators [banned GM](https://www.engadget.com/transportation/ftc-finalizes-gm-punishment-over-driver-data-sharing-scandal-130012313.html) from sharing specific consumer data with third parties for a period of five years. Additionally, the company [reached a separate](https://da.lacounty.gov/media/news/general-motors-pay-1275m-settle-california-consumer-protection-lawsuit-alleging-data) consumer protection settlement with California earlier in the year amounting to $12.75 million.