General Motors to Pay $220 Million to Settle 35-State Data Privacy Lawsuit Over Smart Driver Program

General Motors has agreed to a $220 million settlement to resolve a multi-state lawsuit over its Smart Driver program, which collected and shared drivers' data without adequate consent. The settlement involves 35 state attorneys general who alleged that GM's program tracked and transmitted detailed driving behavior, including speeding and hard braking, to third parties such as insurance companies. This data sharing allegedly affected insurance premiums and violated consumer privacy expectations. The lawsuit claimed that GM enrolled drivers in the Smart Driver program through deceptive practices, often without clear disclosure, and then sold the collected data to data brokers. These brokers then sold the information to insurers, who could use it to adjust rates or deny coverage. The settlement requires GM to pay $220 million, with funds distributed among the participating states, and to implement stricter privacy controls and obtain explicit consent from drivers before collecting or sharing their driving data. This settlement underscores the growing regulatory scrutiny on automakers' data practices, particularly as vehicles become increasingly connected. For consumers, it highlights the importance of understanding what data their cars collect and how it may be used. Moving forward, GM must reform its data handling processes, and other automakers may face similar legal challenges if they fail to prioritize consumer privacy.