California · FTC · DOJ · Engadget
GM agrees to pay $12.75 million to settle California suit over misuse of customers' driving data
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Following its settlement with the FTC earlier this year over its sale of drivers' data to brokers, General Motors has now also reached a settlement in California.
Key facts
- The lawsuits came after a 2024 New York Times report revealed that GM collected consumers' driving data through its OnStar program and sold this information to data brokers Verisk Analytics
- The settlement agreement stipulates that GM must delete any driving data it's retained within 180 days "except for certain limited internal uses," unless it has the customer's express consent
- Following its settlement with the FTC earlier this year over its sale of drivers' data to brokers, General Motors has now also reached a settlement in California
- Nevertheless, the complaint alleges that GM violated consumers' privacy by nonconsensually selling data that included people's names, contact information, geolocation data and driving behavior data
Summary
In some cases, that driving data could be used by insurers to increase customers' rates. The settlement agreement stipulates that GM must delete any driving data it's retained within 180 days "except for certain limited internal uses," unless it has the customer's express consent.