California Fines GM for Privacy Violations
If you’re one of those California drivers who has had a General Motors car—like a Chevrolet or Buick—over the years, here’s something you might find surprising: your driving data could have been sold without your consent.
California just hit GM with a hefty $12.5 million fine for this privacy breach.
However, don’t expect a check in your mailbox anytime soon. This fine goes directly to the state, and, well, it seems there’s no mention of consumers getting any direct compensation.
California Attorney General Rob Bonta announced that GM has agreed to settle a lawsuit, admitting to selling the personal driving data of numerous California drivers to third-party data brokers. This happened despite GM’s own privacy statements claiming they wouldn’t sell such data.
“General Motors sold California drivers’ data without their knowledge or consent,” Bonta remarked, adding that there were multiple reassurances given to drivers. “This trove of information included precise personal location data that could identify Californians’ daily habits and movements,” he noted.
When contacted, GM hadn’t provided a comment immediately.
From 2020 to 2024, GM reportedly gathered names, contact details, location data, and even specific driving habits—like hard braking and acceleration—through its OnStar system. They then sold this information to companies like Verisk Analytics and LexisNexis Risk Solutions, profiting around $20 million.
A survey by a notable source revealed GM was collecting and selling data on millions of drivers across the U.S. Some consumers have voiced concerns about rising insurance rates likely linked to such data breaches. Interestingly, though, California GM drivers didn’t see similar hikes in insurance because insurers in the state cannot use driving data to adjust rates.
As part of this settlement—and pending court approval—California plans to impose new restrictions on car companies. GM won’t be allowed to sell consumer driving data to data brokers for the next five years, nor will they be able to limit how that data is subsequently used.
A GM representative stated that the agreement addresses the Smart Driver program, which is set to be discontinued in 2024, and emphasizes their efforts to enhance privacy practices.
