Brandon Fletcher
A prolonged legal confrontation spanning two years between General Motors and California’s legal representatives, spearheaded by Attorney General Rob Bonta, has reached a resolution. GM has consented to pay .75 million in penalties related to the alleged improper handling of customer driving data.
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In a press release detailing the terms of the settlement, the Attorney General claims that GM unlawfully sold “the names, contact details, geolocation data, and driving behavior data of hundreds of thousands of Californians” to data brokers, including Verisk Analytics and LexisNexis Risk Solutions. The release emphasizes that “If you know the precise location of a person’s car, then you know an enormous amount of personal, sensitive information about that person — their home, workplace, children’s school, and place of worship.”
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The initial details of the case were revealed by The New York Times in 2024, focusing on whether insurance companies exploited this driving data to impose higher rates on certain customers. However, the Attorney General’s investigation concluded that “California drivers were not directly impacted by GM’s sales of data,” since California’s stringent insurance regulations prohibit insurers from using driving data to determine insurance premiums.
Alongside the $12.75 million settlement, GM has agreed to cease selling driving data to any consumer reporting agencies for a period of five years. They will also delete any existing driving data within 180 days, unless specifically authorized by the driver to retain the information. Furthermore, GM is committed to developing and maintaining a comprehensive privacy program to evaluate its data collection practices and mitigate the risks associated with potential data breaches.
Although this settlement marks a significant victory for consumer privacy, it is essential to note that GM is not in dire straits financially. Based on the Attorney General’s estimates, GM generated approximately million from the sale of its OnStar data. Therefore, despite the substantial settlement, the company continues to operate profitably.
Daniel Mercer
